Hello,
There is a partnership firm whose turnover is Rs. 35 lakhs for F.Y 2018-19 and net profit is Rs. 2800 approx i.e 0.1% approx, we have profit and loss account and balance sheet.
So is TAX AUDIT mandatory?
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Is TAX AUDIT mandatory if turnover is Rs. 35 lakhs and the net profit is 0.1% of the turnover approx
Replies (9)
Is not required
Yes, under clause c of 44ab
@ Adnan,
In a normal business, the Tax Audit is applicable if Turnover exceeds INR 1 Crore. In the case of the profession, the Tax Audit limit is INR 50 Lakh.
In your case tax audit is not applicable.
It is a partnership firm
@ Adnan,
The Limit remains the same.
There is remuneration to partners expenditure shown
@ Adnan,
In your case, you are following to file your return under normal provisions by showing complete details of the P/L A/c and Balance sheet. So, you can show Remunerations as well.
Are you sure?? Can you support this with some reference??
@ Adnan,
You can refer the section 44AB for the applicability of Tax Audit. Please find enclosed the link for your reading purpose.
https://www.incometaxindia.gov.in/pages/acts/income-tax-act.aspx
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