my query is if turnover of business is 12.5 lac and loss is 50k then is it compulsory to go for tax audit if not opting the provision of 44AD and showing loss normally maintaining all books of Accounts
As a plain Reading of 44AB is says audit is applicable only to those who fall under sub sec 4 of 44AD and these are those person who earlier opted the 44AD and the showing Normal business income in any of 5 succeeding AY
Menu
Audit Of Loss in Normal Business
Replies (3)
Normally tax audit from this FY has been increased to
10 crores rupees in a financial year and for 44AD if turnover excess 2 crores rupees and profit is less than 8% of turnover then tax audit is applicable.
In your case as your Turnover is less than
10 crores rupees and not opting 44AD so tax audit is not applicable
10 crores rupees in a financial year and for 44AD if turnover excess 2 crores rupees and profit is less than 8% of turnover then tax audit is applicable.
In your case as your Turnover is less than
10 crores rupees and not opting 44AD so tax audit is not applicable
If you continue 44AD then tax audit will be required as you are declaring loss. However, when book of account are maintained , there is no issue of tax audit as turnover limits are applicable. Turnover limit has been hiked to 10 crores from 01-04-2021.
If earlier 44AD not opted, no need to tax audit this year.
This is as per sub section (5) of section 44AD.
Recent Topic
- Input tax credit under igst under insurance compan
- ITR Form to be used
- CGAS account Holder Deceased
- ITR form suggestion
- Post office KVP income.
- Free GST invoice tool I built for my practice R
- Clarification on Gratuity Exemption under Section
- GOODS AND SERVICE TAX - GSTR 1
- Correct ITR form
- Clarification required on Section 393 & Report
Related Topics
CAclubindia
