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Section 44 AB tax audit applicable how to show profit percentage doubt

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MPR Sanjay Kumar

3145 Points Posted on 07 March 2023

dear Chartered Accountants and experts

according to section 44 AB tax audit how to show the profit percentage actually what is the rules of this section particularly ..

......Mrs Lakshmi Lal jain a wholesale silk seller

Turnover RS 1.5 crore

cash receipt RS 5 lakh

cash payments RS 2 lakh

bank transaction RS 1 lakh

here how to declare my profit percentage as section 44 AB of tax audit

Query : is it mandatory to show below of 5%???

please I need a calculation in practically

Replies (2)

Quick Summary

This discussion addresses how to declare profit percentages under Section 44AB of the Indian Income Tax Act, particularly for wholesale businesses. The user, a silk seller with a turnover of ₹1.5 crore, is seeking clarification on the rules and whether a profit below 5% is mandatory to declare. Experts are advising to consider actual profits alongside previous years' profit ratios for accurate reporting.