banner_ad

Tax audit in itr3 or itr 5

371 views 5 replies
1 is tax audit is neccessry if profit below 8% in partnership nd propritership firm?
2 if net profit on commision income below 8% in itr 3 or 5 audit necessry?
Replies (5)
Yes, Tax Audit is mandatory if the profit is below @ 8 % in the case of cash transactions
and if the profit below @ 6% in the case of other than cash transaction

1. Tax Audit mandatory if profit falls below 6% or 8% as explained above by CA Karatanshuji. 2. Commission does not fall u/s 44AD therefore one cannot file ITR-4. In that case if it is a Proprietary firm then one has to file ITR-3 & if it is a Partnership Firm then ITR-5.

Sir is the the profit is below @ 8 % in the case of cash transactions 
and if the profit below @ 6% in the case of other than cash transaction is in case of 44 ad or in all cases?
1) In case of Partnership firm :
If profit is below 8%and 6% in case if transaction other than cash then taxaudit is compalsary.
If tax audit is done then ITR 5 and if 44ad then ITR 4.
2) In case of proprietership
If profit is below 8%and 6% in case if transaction other than cash then taxaudit is compalsary.
If tax audit is done then ITR 3and if 44AD Opt then ITR 4

Note : In both case if income is earn in the nature of commission or brokerage then 44AD is not available.
In case of commission in 194c itr3 is compulsory and if yes then profit is to be less than 250000 for not doing audit. if profit is above 250000 in itr3 then audit is compulsory required? plz guide


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details