As per Sec 44 AB , you have to maintain book of Accounts if your Gross Turnover is more than 1 Crores . And 44 AD says that if books of accounts are not maintained , less than Rs.1 Crores , then 8 % is to be disclosed . So a combined reading implies that if less than 8 % profit is shown , than the books of accounts have to maintained .
As per Section 44AB, It is obligatory for a person carrying on business or profession to
get his accounts audited before the “specified date” by a Chartered Accountant, where the assessee is covered under section 44AD, and he claims that the profits and gains from business are lower than the profits and gains computed on a presumptive basis and his income exceeds the basic exemption limit.
IF U DISCLOSE LOWER THAN THE 8% OF THE INCOME AS PROFIT IT IS COMPULSORY FOR U TO MAINTAIN THE BOOKS OF ACCOUNT U/S 44AA & TO GET THE BOOKS OF ACCOUNT AUDITED BY THE CA.
If a partnership business(dealing in food items) having turnover less than 1 crore, and profit margin margin is less than 8%. Are they applicable for tax audit??
tax audit is compulsory if you show profit less than 8 %, but that partiular tax audit will not be counted for the limit of total no. of audits for chartered accountants.
thanks