The basic provision under Sec 44 AB says You have to get your accounts audited if annual turnover in PY exceeds Rs 1 cr except if you are covered under 44AD such limit extends to Rs. 2 cr. That means if one turnover amounting Rs 1.5 cr and he is paying tax on more than 8% profit, he is not liable to tax audit or 44AB.
Entire picture is pretty much clear upto here but the real confusion is as follows:
Is this written anywhere in the act that if your turnover is upto Rs 1 crores then its mandatory to show profit atleast 8% otherwise U need to get ur accounts tax audited.
When I asked d same from my Principal, he says this only.
But as far as I interpreted from what has been given in 44AB is that if anyone's is covered under 44AD and showing his profit less than even 8% then he will b liable but where it has been written that even if your turnover is less than 1 crore and you are maintaining proper accounts under sec 44AA and also showing profit at less than 8%, whether later is also covered under tax audit?
Respected knowledgeable persons
CAclubindia
