If turnover of a individual assessee's business is below 1 crore and his Net Profit is below 8%, is it required to conduct tax audit. The general answer is yes. But, also quote section which asks for audit. Section 44AB lays down criteria for audit, as per which, criteria is turnover limit for business and profession, and where presumtive taxation scheme is opted and profit claimed to have been earned is below the specified limit. In the income tax return, we have to specifically select, whether we have to opt to section 44AD or 44AE. If we do not opt for 44AD/AE specifically and we state our Net Profit below 8%, whether we have to conduct tax audit.
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Section 44ab
Replies (2)
if I'm not wrong, if sections 44AB/AE not applicable, one can directly show the net profit , whatever it may be, as income from business/profession
Yes you have to conduct if your turnover is below the limit ie currently 2 crore and net profit below 6/8%. If you do not conduct then there are penalties and repercussions for the same.
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