Mandatory Tax Audit for Partnership Firm

Whether any work in progress?

The total receipts in the FY are totally Rs. 10 lakhs? or any amount due?

there is no any rule for for audit of partnership firm under partnership act 1932.

but as per section 44AB if any assessee(indidual or partnership firm) have a turnover of under the income tax 1932.

Partnership firms involved in profession with gross receipts of more than Rs.50 lakhs must complete a tax audit. Partnership firm involved in doing business must complete tax audit, if sales turnover exceeds Rs.2 crores.

Partnership firms involved in carrying on a specified profession would be required to maintain book of accounts as per Income Tax Act, if gross receipts is more than Rs.1.5 lakhs in all three previous years.

In case a partnership firm is receiving income profession (other than specified profession), book of accounts must be mandatorily maintained if income exceeds Rs.2.5 lakhs in any one of the three years previous year.

In case a partnership is involved in business, then maintenance of books of account is mandatory if total sales turnover or gross receipts exceed Rs.25 lakhs in any one of the three preceding years.

hope this satisfies your query.

Yes, can declare income under presumptive scheme, i.e. u/s. 44AD.....

So, no need of tax audit u/s. 44AB, provided mimimum profit declared 6%.

Most Welcome, Dear ......

Hi All,

Can you please advice, if a partnership firm is in loss & turnover less than 2 lac. then he needs to get his accounts audited or not ?

If presumptive assessment opted (i.e. if eligible business), no need for for tax audit.

If there is a loss then books of accounts need to be maintain and accounts need to be audited