Tax Audit Applicability

In both case tax audit is not applicable
because turnover limit is less than 1cr.

thank you Manishji
so no tax audit under 44AD in scenario 1?

1. A person carrying on business if his gross receipt or turnover exceeds Rs. 1 crore during the year he will be required to his books of accounts audited u/s 44AB. 
2. Since your Turnover in both the cases has not crossed Rs. 1 crore he will not be required to get his accounts audited u/s 44AB 
Please correct me if the above solution has an alternative view. 

both the cases tax audit is required. loss is nothing but profit less than 8%/6%. but still this has been a topic of discussion in my circle from the past few years. I have handled both the situations in my work life. still no objection was raised by ITD

Tax audit is required in both the situation because in first situation your profit is less than 8%/6% so tax audit should be done

1.Partnership Firm having turnover less than 1cr and Profit below 8%/6%

2. Partnership firm is making loss and turnover is less than 1cr.


Ans :
*Both will be file u/s 44AA then Tax audit today not applicable...

**In case both will file u/s 44Ad the Audit is applicable as per sec 44AD (less than profit limit).

@ Karthik Damle thank you for your response but..
as per 44ad(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee to whom the provisions of sub-section (4) are applicable and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required undersection 44AB.
in case of partnership firm income tax is payable even on a profit of ₹100 so the loss will be considered as income below taxable limit as per the aforementioned provision, so accordingly isn't it exempted from maintaining books and audit?

              1  PARTNERSHIP  TURNOVER   RS. 80 LAKS

 

               2.PARTNER SALARY RS.3,60,000 AFTER  BOOK PROFIT RS. 90,000/-  

                3. PROFIT BELOW 8% AND 6%

                4. IF  APPLICABLE FOR 44AD? ARE REGULAR    FILING?

                5. PARTNER SHIPP ALLOWED  U/S 40?

         PL APPLICABLE   AUDIT

THANKS

 

 

@ amish maknojia agreed. but in partnership firms there is no basic exemption limit hence even if you earn rupee one it is taxable. so if such profit is less than 8%/6% then 44AA is applicable and books to be audited. this is my opinion

Originally posted by : Amish Maknojia
	hello!Will tax audit be applicable in these 2 scenarios:1.Partnership Firm having turnover less than 1cr and Profit below 8%/6%2. Partnership firm is making loss and turnover is less than 1cr.

in Both Cases TAX Audit Required