Tax audit in itr3 or itr 5

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)
Quick Summary
This discussion clarifies the necessity of a tax audit for partnership and proprietorship firms filing ITR3 or ITR5. A tax audit is generally mandatory if profits fall below 8% for cash transactions or 6% for non-cash transactions. It's important to note that commission income often disqualifies businesses from presumptive taxation schemes like Section 44AD, necessitating ITR3 or ITR5 and potentially a tax audit if profit thresholds are not met.

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

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