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Tax audit
whether tax audit is required in case of loss in partnership firm??
Replies (4)
tax audit is subject to conditions provided for gross income/turnover. Profit or loss is irrelevant. Please refer to section 44AB of I.T.Act.
Thank u for d response, in case assessee turnover is less than 1 cr and dere is a loss in d firm whether there will be a need of tax audit as per d provision of sec44ad read with sec 44ab
As I said, profit/loss has no relevance except if covered under 44AD. Please check which conditions you fulfill as per the nature of your business.
Even if the turnover is less than 1 crore, a tax audit is applicable if the assessee income is less than 8% of gross receipts/income. Section 44AD will be applicable to all businesses except plying, hiring or leasing of goods as it is covered under section 44AE.
Please refer the below link
https://www.charteredclub.com/section-44ad/
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