Dear sir/mam, if my sale in FY 19-20 is 40 lakh rupees and I am showing my net profit ₹ 2 lakh which is less than 8% and 6% then do I need an audit?
Regards
20 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 28 December 2020
No you are not liable for tax audit as you are opting for presumptive taxation basis u/s 44AD which is 8% of turnover
Ajay kumar sharma
(63 Points)
Replied 28 December 2020
Turnover is less than 100 lakhs but as per section 44AB if assessee show lower profit which is required by section 44AD then it is compulsory to audit and maintain books of accounts.
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 28 December 2020
Section 44AD tells that if assessee turnover exceeds 1 crores rupees and he is showing lower profit then he is liable for tax audit and have to maintain books of accounts. But if his turnover not exceeds 1 crores rupees and showing lower profit then he is not liable for tax audit
Sumit Shukla
(378 Points)
Replied 28 December 2020
Required to conduct audit as the final profit is less than 6 or 8 percentage of turnover
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 28 December 2020
Yes you are right actually I'm confused between regarding audit of 44Ad and 44Ab now it's clear
Smit Shah
(524 Points)
Replied 28 December 2020
Yes absolutely you are liable for audit but as per my suggestion rather you may show it at 8% which 320000 and also if including other income and after taking general deduction your total income is less than 500000 then there will not be any tax liability and also you can get relief from auditing your books
saurabh sawlani
(Self employed )
(2191 Points)
Replied 28 December 2020
Sir i am filing itr3 will it make any difference or do i have to audit??? is audit is mandatory to mr
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 28 December 2020
U should file itr4s
saurabh sawlani
(Self employed )
(2191 Points)
Replied 28 December 2020
But sir i am filling ITR 3 ...so sir what to do now?
saurabh sawlani
(Self employed )
(2191 Points)
Replied 28 December 2020
SIR MUJE ITR3 HI FILE KRNA HAI ITR4 NHI... OR MERA QUESTION BHI ITR3 K BASE PER E HAI.. OR ABHI TAK MERA CONCEPT CLEAR NHI HUA HAI... MTLAB KYA KRNA HAI... AGAR ME ITR4 KRTA HU TOH KYA HOGA OR ITR3 FILE KRTA HU TOH KYA HOGA... PLEASE SIR GUIDE KRO
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 28 December 2020
If u r opting for presumptive taxation then you should file itr4s otherwise for non presumptive taxation u/s 44ad you should file itr3
bijo scaria
(Article Assistant)
(22 Points)
Replied 02 January 2021
You are not required to get your book audited as per the recent amendment.
The audit is mandatory when the declared profit is less than 6 or 8 % as the case may be and the profit exceeds the basic limit. In this example, the audit is not mandatory because the declared profit is less than 2.5 lakh (i.e basic limit)
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