Dear Experts,
One of the assessee individual earns income under the head profit and gains from business and profession. The assessee files ITR 3 (as applicable for AY 2017-18) for the PY 2016-17 filling all the particulars of Balance Sheet and Profit and Loss Account and after making adjustments under Section 28 to Section 43B.
Say for example the assessee has shown in the profit and loss account "Sale of Goods" of Rs. 24,00,000 and after making adjustments under the relevant provisions of the income tax act has finally computed Income under the head profit and gains from business or profession as a loss of Rs. 2,00,000.
Now my question is that, whether the assessee needs to gets his books of accounts audited under section 44AB of income tax act or not?
As per my view, the assessee doesnot require his books of accounts audited under section 44AB as the turnover has not crossed the turnover limit of Rs. 1,00,00,000. If in case, the assessee had opted for presumptive taxation scheme under section 44AD, then it would have to file tax audit report under section 44AB as the assessee has claimed his profit below the prescribed rate of 8% of turnover.
Your views and suggession would help me a lot.
Thanks and Regards,
Dhrunil Bhatt
CAclubindia
