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Tax audit

Shrividhya (CA Final Student) (74 Points)

29 August 2018

Can someone explain section 44AB of Tax audit along with sub section 4 & 5 of Sec 44AD.

My turnover is 95 lakhs and my profit is 1,90,000 as per by books. Do i need to go for Tax audit. Since my turnover is less than 1 crore is it necessary?

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3 Replies

Rakesh Bandal (Self Employed and Agriculture) (1349 Points)
Replied 29 August 2018

You need to get your accounts audited

udit jain (24 Points)
Replied 30 August 2018

As per section 44Ad if your turnover is less than 2 cr then u have to declare minimum of 8% of your turnover as profit. If you disclose it less than the above mentioned percentage in such case you need to get the books audited. In give scenario you are disclosing profit less than 8% ,hence you need to maintain and as well as get your book audited as per section 44AB even though your turnover is less than 1cr. Further if your transaction are in digital mode 8% will be replaced by 6%.