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Tax audit

NIDHI (ARTICLE) (55 Points)

16 July 2018

what if assessee has turnover less than RS 2cr in next financial year will he be required tax audit ??
e.g fy 2016-17 2cr. yes
fy 2017-18. 1cr. ??

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15 Replies

Vaibhav Siroliya (Solicitor & Tax Consultant) (308 Points)
Replied 16 July 2018

yes
because limit of section 44AB is not increased, limit of section 44AD is increased upto Rs2.00 cr.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 16 July 2018

As per section 44AB of IT act, when turnover of business exceeds 1Cr, mandatory to audit books of accounts.

NIDHI (ARTICLE) (55 Points)
Replied 16 July 2018

What is the status for fy 2017-18 .. as turnover is 1cr or may be less than that.. ll he be required tax audit for fy 2017-18

Vaibhav Siroliya (Solicitor & Tax Consultant) (308 Points)
Replied 16 July 2018

In that case if the client crossed limit u/s 44AB i.e. Rs. 1cr than he is required to get audited his BOA other he is not in this section.

NIDHI (ARTICLE) (55 Points)
Replied 16 July 2018

that means if an assessee has turnover of RS 60lakh then he is not required to do to tax audit

Vaibhav Siroliya (Solicitor & Tax Consultant) (308 Points)
Replied 16 July 2018

yes, tax audit is not required.

Divakar (Student CA Final ) (11857 Points)
Replied 16 July 2018

If turnover is less than Rs. 1 crore in previous financial year then no tax audit required but u hv to show minimum profit 8%....or u can file presumptive return simply ITR4

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Harini Rajagopalan (7 Points)
Replied 16 July 2018

what if the turnover is less than 1cr and the person is showing less than 8% profit? 44AB applicable or not?

Divakar (Student CA Final ) (11857 Points)
Replied 16 July 2018

If their act requires separate audit report then no need to do tax audit report... Like in company... Company act mandate for audit then no need to do tax audit.... And if profit is less than 8% tax audit required on below turnover also say 1 crore

NIDHI (ARTICLE) (55 Points)
Replied 16 July 2018

is that if a firm is required to do audit dis year then he is required to do next year even if he doesn't comes under sec 44ab or ad or any other sections???

Divakar (Student CA Final ) (11857 Points)
Replied 16 July 2018

Nope.... For tax audit only last year turnover is considered... And it is not mandatory that once tax audit applicable always applicable... Its applicable only on last year turnover.... But firm generally do tax audit otherwise they have to show 8% profit and 30% flat tax rate applicable