APPLICABILITY OF TAX AUDIT

ITR-3 an individual or an HUF is a partner in a firm AND. where income chargeable to income-tax under the head “Profits or gains of business or profession” does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, due to, or received by him from such firm

Originally posted by : ayush dhingra
	Will be kind if you'll share your knowledge for both the cases

If " Presumptive taxation (44AD) " not opted and turnover is below 100 Lacs of Indian Rupee then you just need to maintain proper " Books of accounts " ...no audit required (irrespective of profit percentage) .

If Individual then no need to Tax Audit if file under sec 44AA...

In case it's Partnership Firm then Tax Audit applicable if less than 8 percentage of Profit shown even if opt sec 44AA...

https://www.caclubindia.com/Forum/details.asp?mod_id=432606

Originally posted by : RAJA P M
	If Individual then no need to Tax Audit if file under sec 44AA... In case it's Partnership Firm then Tax Audit applicable if less than 8 percentage of Profit shown even if opt sec 44AA...   https://www.caclubindia.com/Forum/details.asp?mod_id=432606

Dear Raja , why different treatment between individual and a partnership firm ? the only criterion here is the upper threshold of turnover i,e 100 lacs of INR ... thats it...

Originally posted by : RAJA P M
	Yes... If partnership firm then Tax Audit applicable if less than 8 percentage of profit...

Any specific reason/law provision/Court-ITAT ruling/CBDT circular in support of this view ? 

Originally posted by : Saifullah Khalid
	Originally posted by : RAJA P M Yes... If partnership firm then Tax Audit applicable if less than 8 percentage of profit... Any specific reason/law provision/Court-ITAT ruling/CBDT circular in support of this view ?

Dear Mr Saifullah Khalid.,

Can You explain Your view...?

Originally posted by : RAJA P M
	Originally posted by : Saifullah Khalid Originally posted by : RAJA P M Yes... If partnership firm then Tax Audit applicable if less than 8 percentage of profit... Any specific reason/law provision/Court-ITAT ruling/CBDT circular in support of this view ?  Dear Mr Saifullah Khalid., Can You explain Your view...?

Dear Raja , untill any specific guideline/provision/instruction/Court-ITAT/circular of CBDT is available , we will have to take the wordings of a provision by "literal meanings" ... compulsion of " Audit " as defined in law (except " presumptive taxation " category where if declaring below "prescribed rate" of profit percentage and income above BLE will require compulsory audit) is "Turnover threshold " based ..so in non "presumptive taxation scheme " based assesment cases the only criterion is upper threshold of 100 lacs (50 lacs in case of professional income ) INR , other then this I have not found ANY other reason (in general/regular assesment case) for audit compulsion .

Yeah... You are exactly point out the reason...

Even the differenciate between the nature of INDIVIDUAL & PARTNERSHIP will be differentiate and Based on the slab rate..

So, 

As per the view Individual Can go without Tax Audit... And the Firm with Tax Audit...

Originally posted by : RAJA P M
	Yeah... You are exactly point out the reason... Even the differenciate between the nature of INDIVIDUAL & PARTNERSHIP will be differentiate and Based on the slab rate.. So,  As per the view Individual Can go without Tax Audit... And the Firm with Tax Audit...

Dear Raja , again I am not able to get your point ...Partnership firm is just another taxable entity as is an individual ... slab rates difference has nothing to do with 44AB provisions... 44AB just talks about one criterion and that is TURNOVER .

Originally posted by : RAJA P M
	Dear Mr Saifullah Khalid., Can You explain Your view.... As per your same requirements as above

Dear Raja , nothing to explain ...whatever I said is in line with the " text " of section 44AB ....