Is audit necessary?

Originally posted by : Shreya Aggarwal
	The turnover of a proprietorship firm is6.00 Lacs and the net profit is25,000 i.e. less than 8%. Is tax audit necessary? Will tax audit be necessary if net loss is there is such a case?

In this case provision of Tax Audit is not applicable if total income on the presumptive basis does not exceed the maximum amount not chargebale to tax. It means if 8% of turnover exceeds Rs.1,60,000 / Rs.180000 as the case may be in that case TAX Audit would be applicable if the declare profit is less than 8% or even in case of loss.

Yes i am wrong

If profit is less than 8% than audit is must.I asked expert on the site and here is the reply

/experts/late-return-penalty-presumptive-tax-advance-tax-doubt-756095.asp/experts/late-return-penalty-presumptive-tax-advance-tax-doubt-756095.asp

In case of individual not necessary

Originally posted by : Shreya Aggarwal
	The turnover of a proprietorship firm is Rs. 6.00 Lacs and the net profit is Rs. 25,000 i.e. less than 8%. Is tax audit necessary? Will tax audit be necessary if net loss is there is such a case?

 Audit u/s.44AB is mandatory only if the turnover is above Rs.60 Lacs for A.Y.2011-12.