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Tax audit applicablity

priyanka (Audit Assistant) (33 Points)

13 July 2016

A proprietor ship firm having loss in F.Y 2015-16 and its turnover is also less than 50 Lacs.so whether Tax audit will be applicable considering Section 44AD Provision.

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Sangram Kumar (student) (344 Points)
Replied 13 July 2016

/articles/understanding-of-44ab-tax-audit-25032.asp

(Guest)

Condition for audit u/s 44AB in relation to income from eligible business u/s 44AD Condition-1 Assessee claims profit or gain less than 8% of the turnover or gross receipt from the eligible business (44AD). And Condition-2 whose total income exceeds the maximum amount which is not chargeable to income-tax. Above both the condition should be satisfied for tax audit u/s 44AB in relation to profit or gain from eligible business (44AD) Note that:- in case of loss second condition is not satisfied ….. so audit is not required

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Shubham Gupta (Business Consultants) (2077 Points)
Replied 13 July 2016

https://www.facebook.com/SCAGAdvisors/photos/a.851133675026690.1073741827.851128065027251/851584598314931/?type=3&theater

Dinesh Mertiya (PROFESSIONAL) (761 Points)
Replied 13 July 2016

If any person claims that the profit from the business are lower than u/s 44AD (8% of turnover) and his/her income exceeds the maximum amount which is not chargeable to tax

he is required to get their books of account audited under section 44AB

yogesh jain (student) (21 Points)
Replied 14 July 2016

Hey ! Friends I have very big quarry about tax audit applicability .

A trader who trade is stock market whose turnover exceed the limit describe in sec44AB but whose income from this trading is very less than basic exception limit... Whether he is required to do tax audit or not !

Is any genius who can solve my this confusion ??