I am having partnership firm till last yr i. e 2020 our turnover was 1.5 cr and profit below 8% so we had audited our firm but now in 2021 our turnover is only 37 lakh and firm shows loss of rs 8 lakh so it is necessary to do audit. plz suggest
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Quick Summary
This discussion addresses whether a partnership firm experiencing a turnover drop and a net loss requires a tax audit. The consensus is that if presumptive taxation under Section 44AD was not opted for in previous years and the firm has a net loss, a tax audit under Section 44AB is generally not applicable. The conversation also touches upon the ITR filing due dates for working partners when an audit isn't required.