Audit in case of loss of business

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79 Points Posted on 14 June 2021
I m having partnership firm up to last yr we r going under audit as profit below 8 percent and turnover above 1 crore
now this yr my turnover is 35 lakh only and firm shows loss. is it necessary to do audit of my firm.
plz suggest
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On 14 June 2021 at 18:06 Report
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Quick Summary
If your partnership firm has a turnover below £1 crore and is showing a loss, a tax audit is generally not mandatory. Unlike individuals, the £2.5 lakh income threshold doesn't apply to firms. Therefore, if your turnover is below the threshold and you've incurred a loss, you likely won't need to conduct an audit.

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Learner
2398 Points Posted on 14 June 2021
Not required as turnover below 1CR
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On 14 June 2021 at 18:28
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tax consultant
3306 Points Posted on 14 June 2021
If total income is above 2.5 lacs then audit is applicable
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On 14 June 2021 at 20:36
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Student
252 Points Posted on 14 June 2021
If partners decided to declare 8% profit then no Audit is required otherwise Audit is mandatory
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On 14 June 2021 at 21:04
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Chartered Accountant
24588 Points Posted on 14 June 2021
Tax audit is not required
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On 14 June 2021 at 21:30
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79 Points Posted on 14 June 2021
What in case of loss
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On 14 June 2021 at 21:30
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Learner
2398 Points Posted on 14 June 2021
Here no slab will be applicable for firm hence 2.5 lac is irrelevant for firm I guess. correct if I am wrong.
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On 14 June 2021 at 21:48
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170 Points Posted on 15 June 2021
Audit is not mandatory since the T/o is below 1 Cr and Net Income is negative i.e. Loss
1 Reply
On 15 June 2021 at 10:18

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