Audit for a.y. 2017-18

For Section 44AB to apply to a 44AD eligible assessee, two conditions are to be satisfied:

1. The profits declared u/s 44AD are below prescribed limits.

2. Total income exceeds the maximum amount which is not chargeable to income tax.

If both the conditions are satisfied, Sec 44AB shall apply to an eligible assessee u/s 44AD. Hence, the firm (assuming it is eligible assessee u/s 44AD)  satisfies both the conditions as mentioned above, requires to be tax audited...
 

sir please tell me the section under which sub-section 44AB my accounts will get audited ? 

Originally posted by : Rahul M Matang
	I have a partnership firm. If my turnover is below 1 Crore Rss, say Rs. 90 Lakhs, and i am having profit of Rs. 3 lakh which is below 6% of my turnover after allowing remuneration and interest to partners. Will i have to get my accounts audited or not ?

1. 6% - To encourage businesses to receive payments digitally, the govt has also provided an incentive to Businesses who receive payments digitally. Profits on payment received digitally by businesses would be considered at 6% of the total amount received digitally. This incentive is applicable from Financial Year 2016-17 onwards

2. Remuneration & Interest : The Salary/ Remuneration/ Interest paid to Partners would also not be allowed to be claimed as a deduction.

3. Accounts Audited : Section 44AD: Profits assumed at 8% / 6%of Sales for Businesses with Turnover of less than Rs 2 Crores per annum

In my view - in your case the above points ll be not applicable. So, In this case to under Tax Audit is applicable...

If you do not wish to audit your accounts as per section 44AB............

Only way out is declare 6/8% (bank/other mode) of 90 lakhs turnover u/s. 44AD.......

But no remuneration or interest allowed to be deducted before hand (deemed to be have already deducted) !!

Partners can share the net profits after taxation of the firm, which will be tax-free in their hands.

@ Mr.  Dhirajlal Sir

(Sir, Please see my profile. My status is Yours....!!!!!)

Keep Trying............ One day desination will arrive.........

All the Best........

If you do not wish to audit your accounts as per section 44AB............ Only way out is declare 6/8% (bank/other mode) of 90 lakhs turnover u/s. 44AD....... But no remuneration or interest allowed to be deducted before hand (deemed to be have already deducted) !! Partners can share the net profits after taxation of the firm, which will be tax-free in their hands.