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Tax audit in case of commission income
One of my client partnership firm which is deriving income as commission. Is tax audit applicable if turnover os less than 1 cr and declaring profit less than 8 %.??
Replies (4)
Quick Summary
Section 44AD is not applicable to commission income, therefore profit can be declared as less than 8%. Tax audit is applicable if the turnover exceeds Rs. 1 crore provided if the cash receipts is less than 5% of total receipts and cash payment is less than 5% of total cash payment, then tax audit will be applicable if turnover is more than Rs. 10 crore.
That means in case of carrying commission business if firm incurred loss still firm not liable for audit if turnober is less than 1 cr???
Audit not applicable but full financials will need to be reported.
Can I file the tax return without tax audit if I'm earning only commission income
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