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Tax audit

16 October 2018

If I had previous year 1.15 Crore Turnover and Got audited but now this year Turnover is 44 Lac and Profit is 5.5% so what to do this year.... Go to audit or file Normally ITR3????

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6 Replies

sanjith kotni (Articled assistant) (663 Points)
Replied 16 October 2018

file normally as Ur turnover is within the ceiling of 1 crore as specified under 44AB

1 Like

Radhika Ajmera (CA IN practice) (163 Points)
Replied 16 October 2018

you can file ur return by taking deemed profit 6% OR 8% u/s 44AD.
but if you wish to declare profit @ 5.50% then u have to file audit u/s 44ab(e)

FAHEEM AKRAM (293 Points)
Replied 16 October 2018

#Radhika ajmera my opinioi 44AB(e) has been removed so that if I declare profit below 6% or 8% not required audit....

sanjith kotni (Articled assistant) (663 Points)
Replied 16 October 2018

just check 44AB there is no clause as such like if you offer below the rate ,,then tax audit to be done like that.

1 Like

FAHEEM AKRAM (293 Points)
Replied 16 October 2018

Absultly right there is no any clause regarding Below profit decalare so u will get audit

Amish Maknojia (Student) (507 Points)
Replied 17 October 2018

As per " Finance Act, 2017 ─ Explanatory Notes to the Provisions of the Finance Act, 2017 Circular No. 2/2018 : - 15 February 2018"

23. Exclusion of certain specified person from requirement of audit of accounts under section 44AB.

23.1 The provisions of section 44AB of the Income-tax Act provide inter alia that every person carrying on the business is required to get his accounts audited if the total sales, turnover or gross receipts in the previous year exceeds one crore rupees. The threshold limit for applicability of presumptive taxation in case of eligible business carried on by eligible person under section 44AD of the Income-tax Act was increased to two crore rupees from one crore rupees with effect from 1st April, 2017 relevant to Assessment year 2017-18 by Finance Act, 2016. Further vide press release dated 20th June, 2016, it was clarified that if an eligible person opts for presumptive taxation scheme as per section 44AD(1) of the Income-tax Act, he shall not be required to get his accounts audited if the total turnover or gross receipts of the relevant previous year does not exceed two crore rupees.

23.2 In light of the above legislative changes and to reduce the compliance burden of the small tax payers and facilitate the ease of doing business, section 44AB of Income-tax Act has been amended so as to exclude the eligible person, who declares profits for the previous year in accordance with the provisions of sub-section (1) of section 44AD of the Income-tax Act and his total sales, total turnover or gross receipts, as the case may be, in business does not exceed two crore rupees in such previous year, from requirement of audit of books of accounts under section 44AB of the Income-tax Act.

23.3 Applicability: This amendment takes effect from 1st April, 2017 and will, accordingly, apply from assessment year 2017-18 and subsequent assessment years.