Return filling defect

what is the reason of this type of errors as client is not liable for audit bcz turnover less than 1cr and profit less than 250000 (last yr return filled u/s 44ad)- error: you have claimed income less than 8% of gross turnover. please check ur computation and liability for audit if any u/s 44AB/ 44AD(5)
Replies (6)
Quick Summary
This discussion addresses a return filling defect where claimed income is less than 8% of gross turnover. It clarifies that audit requirements aren't solely based on turnover, but also on profit percentages (6-8% for business, 50% for profession). Even if turnover is below the threshold for mandatory audit, a minimum profit percentage must be declared. If profit is less than the specified percentage, an audit report might be required, or the income needs to be recomputed.

Turnover alone is not criteria for tax audit.

% of profit also matters .


6/8% for business

50% for profession

So for turnover based non audit cases , the minimum profits should be 6%/8%/50%
8% criteria IA applicable only in case when we opt for 44ad otherwise is u have profit less than 250000 then no audit is required as per 44AD(5)
How much is the value of gross receipts ?
66 lacs
Are you able to file ITR without Audit Report ?
Till now it's pending

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
08 September 2026
Audit Executive

Thammana & Associates

Srikakulam

B.Com

View Details
Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details