Partner ship firm audit

Tax Audit applicable.

In your case tax audit is not applicable

Why not applicable kindly explain?

      DEAR SIR  MR.  ATUL PITHADIA

   MY QUERY IS

         TOTAL   SALES  RS.   60.00. LAKS (THE PARTNERSHIP FIRM)

        PARTNER INTEREST RS. 3.00. LAKS

       NET PROFIT  RS. 1.00. LAKS

     NO PARTNER SALARY IN P/L  A/C

IF THE FIRM APPLICABLE U.S 44AD?

  OR

CLAUSE  44AB (e) profits and gains lower than deemed profit u/s 44ad?

thanks to all

Since your profit is Rs. 1.00 lacs which is 1.66% of total sale of 60.00 lacs then Tax audit is mandatory beacuse as per Sec 44AD 6% or 8% profit need to be maintained after payment of Interest and remuneration to partner and not before.

The law clearly states that u/s 44AD, you will get books audited if you've claimed presumptive benefit in any previous year, and you don't continue to claim benefit under presumptive for further 5 AY's from the relevant i.e., say in AY 2017-18 you've taken 44AD, in any of the AY 2018-19,2019-20,2020-21,2021-22 you DO NOT continue with presumptive scheme, you maintain BOA & get it audited duly.