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Audit u/s 44AB

vidya burman (student) (15 Points)

01 November 2019

If a person is having turnover of Rs. 1.4 cr and showing net profit below 6/8% unser which clause of 44AB audit shall be conducted. 44AB(a) or 44AB(e)

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15 Replies

Akash Mhatre (Learner) (312 Points)
Replied 01 November 2019

Sec 44AB(a) of IT act.

2 Like

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 01 November 2019

As per sec 44AB Tax audit limit Rs 1cr for business and Rs 50lakhs for professional...

So, As per Your query the turn over is exceeding the said limit..

(ask with some more details your query!)

2 Like

vidya burman (student) (15 Points)
Replied 01 November 2019

Can you please explain that why it will not be conducted under clause (e)

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 01 November 2019

Under Claus (e) with connection of sec 44AD of the IT act...

Please Better to refer sec 44ad...

1 Like

Kapadia Pravin (17264 Points)
Replied 01 November 2019

(

Under 44AB (e)
...carrying on the business shall, if the provisions of sub-section (4) of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,

get his accounts of such previous year audited by an accountant before the specified date and furnish by that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed ...

The reply is 44AB (e) ...

1 Like

sabyasachi mukherjee (27837 Points)
Replied 01 November 2019

@ kapadia
everyone knows that there is a maximum limit.
specify the limit.
Sec 44Ab
if his business exceeds Rs. 1 crores.
In case of profession it is 50 lacs in excess of the gross receipts.
Then his books of accounts shall be audited by a chartered accountant having COP.
Now , kapadia does not understand cop.
In a nut shell this is the provision.

@ vidya the basic section is 44AB.

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 01 November 2019

Ohhh... Ohhh God.... 😇😇😇😇

A unlike reply by You Mr Sabyasachi ....

Why you will fight or criticize to Mr Kapadia and Also others...?

Please just reply to Query...🙏🙏🙏🙏🙏

1 Like

Kapadia Pravin (17264 Points)
Replied 01 November 2019

In reply to sanyashai post -

what bakwas you are vomitting ?
what fun you are getting ? by bluff posting.
Read from top to bottom !!!!

44AB (e) is not my words. That is copy pasted from the bare Act itself. You can vouch it in the Act.
The query is in connecton with 44AD section.

Rijo John (audit manager) (447 Points)
Replied 01 November 2019

44AB. Every person,—

[a] carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees in any previous year; or

[b] carrying on profession shall, if his gross receipts in profession exceed fifty lakh rupees in any previous year; or

[c] carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AE or section 44BB or section 44BBB, as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any previous year; or

[d] carrying on the profession shall, if the profits and gains from the profession are deemed to be the profits and gains of such person under section 44ADA and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his profession and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year; or

[e] carrying on the business shall, if the provisions of sub-section [4] of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,

get his accounts of such previous year audited by an accountant before the specified date and furnish by that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed :

62[Provided that this section shall not apply to the person, who declares profits and gains for the previous year in accordance with the provisions of sub-section [1] of section 44AD and his total sales, turnover or gross receipts, as the case may be, in business does not exceed two crore rupees in such previous year:]

Provided 62[further] that this section shall not apply to the person, who derives income of the nature referred to in section 44B or section 44BBA, on and from the 1st day of April, 1985 or, as the case may be, the date on which the relevant section came into force, whichever is later :

Provided 63[also] that in a case where such person is required by or under any other law to get his accounts audited, it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and furnishes by that date the report of the audit as required under such other law and a further report by an accountant in the form prescribed under this section.

Explanation.—For the purposes of this section,—

[i] "accountant" shall have the same meaning as in the Explanation below sub-section [2] of section 288;

[ii] "specified date", in relation to the accounts of the assessee of the previous year relevant to an assessment year, means the due date for furnishing the return of income under sub-section [1] of section 139.

1 Like

sabyasachi mukherjee (27837 Points)
Replied 01 November 2019

@ kapadia
which one is bluff...?

rama krishnan (12244 Points)
Replied 02 November 2019

If your turnover exceeds 1 cr but below 2 cr , you have options to either declare 8% or 6% of turnover as income or audit your books under 44ab and declare income below 8% or 6%, as the case may be .

unwarranted feud between mr Kapadia and Mr. sabyasachi. this forum is to learn from others what we don't know and to share knowledge what we know. if any person corrects our mistakes and gives a clear picture about a particular provisions, welcome it with applause and don't feel it as shame. let's stand united and keep spreading the knowledge to others and learn from others as well

1 Like

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 02 November 2019

Well Mr Ramakrishnan... I like Your reply based on query without simply in all forums in long time. That's required to Querist not a copy paste of the acts, rules and regulations if they not required reference...

All persons can't understand law's from bare acts including me also. Then why we copy paste the text from one location to here. Why not reply simply...? The same (texts) acts rules and regulations is more & more way to get in internet...
better to think about and reply with simply...

Thank You Mr Ramakrishnan for attending the forum...

GOOD LUCK...

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 02 November 2019

Thanks Mr. Raja for your encouraging and appreciative words

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 02 November 2019

@ Mr Savan.,

What are the uses in Your channel...?

Why you requested here A's "PLEASE"...?

Are You understand the CCI website activities...? if yes, then

Why You post Your advertisement here...?