Under which clause of 44AB a person is required to get his accounts audited, if he declare profit below 8% of turnover U/S 44AD?
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Clause u/s 44ab
Replies (5)
It will be under 44AB(a).
u/s 44AB(a) --> Every person carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds Rs.1 Crore 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.
| Originally posted by : Sanjay S | ||
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It will be under 44AB(a). u/s 44AB(a) --> Every person carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds Rs.1 Crore 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. |
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This provision is applicable for assesee having turnover above 1crore.
suppose assessee have 95 lakhs turn over and 5lakh profit(below 8%). in this case which clause of 44AB is applicable?
it is mentioned in the proviso
38[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 44ADand his total sales, turnover or gross receipts, as the case may be, in business does not exceed two crore rupees in such previous year:]
38[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 44ADand his total sales, turnover or gross receipts, as the case may be, in business does not exceed two crore rupees in such previous year:]
@ rama krishnan sir
I think this provision is applicable only if the assessee declare 8% profit.
In another case if he is not declared 8% profit and turnover below 1 cr. Whether Audit is required?
mr. sudiesh, the provision referred above is from sec 44AB. so if the assessee declares income u.s. 44AD, 44AB does not applicable. if the assessee fails to show 8% or more income and has total turn over not exceeding 1 crore then 44AB applies. in case of 44AD, the assessee can have turn over upto 2 crores
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