Audit required or not?

Quick Summary
This discussion clarifies whether a tax audit is required for a business with a turnover of ₹40 lakh and a net profit of ₹2 lakh, which is less than the presumptive taxation rates of 6% or 8%. While presumptive taxation under Section 44AD usually exempts businesses below ₹1 crore from audits, declaring profits lower than the prescribed percentage can trigger a mandatory audit under Section 44AB. The thread explores the nuances of ITR filing (ITR3 vs. ITR4S) and offers advice on how to potentially avoid an audit by declaring profits at the presumptive rate or exploring alternative options.

Originally posted by : saurabh sawlani
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

Audit is not mandatory but maintainence of account is mandatory in your case.

Originally posted by : saurabh sawlani
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

U need to file ITR3

Toh sir audit kru ya nhi?
Originally posted by : saurabh sawlani
Toh sir audit kru ya nhi?

Nhi

With the given facts of Net profits less than 8% & 6%, you will have to get the books of accounts audited by a CA.

However, there are alternative to Audit when the Net profits is below 8% or 6%.

 

For more details - CA Sachin M Jain .8.O975. l5447.

WhatsApp : https://tinyurl.com/wCASMJ 

Facebook : https://tinyurl.com/FCASMJ 

Instagram : https://tinyurl.com/ICASMJ 

LinkedIn : https://tinyurl.com/LCASMJ 

YouTube : https://tinyurl.com/YCASMJ 

Twitter : https://tinyurl.com/TCASMJ 

Email : casachinmjain @ gmail.com

With the given facts of Net profits less than 8% & 6%, you will have to get the books of accounts audited by a CA.

However, there are alternative to Audit when the Net profits is below 8% or 6%.

 

For more details - CA Sachin M Jain .8.O975. l5447.

WhatsApp : https://tinyurl.com/wCASMJ 

Facebook : https://tinyurl.com/FCASMJ 

Instagram : https://tinyurl.com/ICASMJ 

LinkedIn : https://tinyurl.com/LCASMJ 

YouTube : https://tinyurl.com/YCASMJ 

Twitter : https://tinyurl.com/TCASMJ 

Email : casachinmjain @ gmail.com

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