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Should i get my account audit u/s 44AB


Debiprasad Jana   11 September 2019

Debiprasad Jana

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I am a partner of my partnership firm. Partnership turnover for the FY 2018-19 was 40,000,00. Partnership firm wants to declare net profit about 2%. Partnership firm already maintained books of account. now the problem is, If partnership firm declare the net profit about 2%, is it mandatory for the partnership firm to get the books of accounts audited.

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Kapadia Pravin   11 September 2019

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Not required to get books of Account audited.

If turnover exceeds 1 crore then it is mandatory to carry out audit under 44AB.

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Suresh Thiyagarajan (Student)     11 September 2019

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1. The only criteria for carrying out tax audit u/s 44AB is only when the T.O or the gross receipts of the firm exceeds Rs. 1 crore during the year. If not then there is no need to carry out a tax audit. 
2. Hence, in your case irrespective of your profit percentage there is need to carry out tax audit. 
Please correct me if the above solution has an alternative view. 

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Pranav Aggarwal   11 September 2019

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but I think the is one condition in 44AB that if assesses declare less than prescribed rate profit and total income exceds basic exemption limit.

then assesses need to carry out audit u/s 44AB?

pls correct me

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Suresh Thiyagarajan (Student)     11 September 2019

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That is given under sec 44AD. no such conditions under sec 44AB. 

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Debiprasad Jana   11 September 2019

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Respected Suresh Thiyagarajan
if partnership firm declairs net profit @ 10%of total turnover (40lakh) and claim remuneration and interest of capital then should i get account audited ?

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RAJA P M ("Do the Right Thing...!!!")     11 September 2019

RAJA P M
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Yes... I agreed with Mr Suresh Thiyagarajan.

But, Must be file with books of accounts as per sec 44AA.

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Suresh Thiyagarajan (Student)     11 September 2019

Suresh Thiyagarajan
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1. Since your T.o is less than Rs. 1 crore ( in case of a business) or Rs. 50 lakhs (in case of a profession) there is no for carrying out tax audit irrespective of the percentage of profit. 
2. In your case, there will not be tax audit as per sec 44AB. 
Please correct me if the above solution has an alternative view. 

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Bhushan B. Paithankar (Tax Consultants)     12 September 2019

Bhushan B. Paithankar
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Mr Pranav is correct

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sachin (ca)     13 September 2019

sachin
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My clint got a notice from income tax department and clint had invest in shares but that was loss in shares but purchase amount or shares = 5 cr. and sale =4.89 cr mean to say loss has been consider so how to show my income in income tax return , do i have to gross turn over 5 cr or what


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