TAX audit Limit and conditions

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75 Points Posted on 10 April 2020
Query :

Sales : 12Lakh

profit : 3000

if I opt ITR-3 then do I need to furnish my tax audit report?

Note: it's a partnership firm.
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On 10 April 2020 at 12:21 Report
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Quick Summary
This discussion clarifies tax audit requirements for a partnership firm with a turnover of 12 Lakhs and a profit of 3000. It explains that filing under Section 44AA generally means a tax audit report isn't mandatory. However, if filing under Section 44AD and showing a profit below the prescribed 6% or 8% limit, a tax audit becomes applicable. The general limit for Section 44AB is Rs 1 crore for turnover.

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"Do the Right Thing...!!!"
128157 Points Posted on 10 April 2020
No...
But, ITR will be file u/s 44AA...
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On 10 April 2020 at 12:36
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75 Points Posted on 10 April 2020
Would I receive the notice ....as I am showing profit below 6%??
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On 10 April 2020 at 13:20
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"Do the Right Thing...!!!"
128157 Points Posted on 10 April 2020
Are You filed Your ITR or asking to file...?

Better to ask Your query correctly with details...

Also read my reply as above and check out Your details...
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On 10 April 2020 at 13:38
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75 Points Posted on 10 April 2020
The ITR is yet to be filed ....I have read you reply correctly but had a doubt... because I got a opinion from a CA friend he said you could have receive the notice if you show your profit below 6% .... whether you are filing your return under any section.....
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On 10 April 2020 at 13:45
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128157 Points Posted on 10 April 2020
Well...
As per sec 44AB Tax Audit limit is Rs 1cr. As per Your turn over Tax audit not applicable if You are filing with sec 44AA...

As per Your advice (ask the details correctly from him)

In case You file the return u/s 44AD and You show the profit less than prescribed limit then Tax Audit applicable as per sec 44ad.

Note : Profit Limit of sec 44ad is 6%/8%
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On 10 April 2020 at 13:53
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Student
23693 Points Posted on 10 April 2020
As per the Provision of Section 44AB of the Income Tax Act 1961, Income Tax Audit is applicable only when your Turnover in Business exceeds Rs. 1 crore or Gross Receipts in Profession exceeds Rs. 50 lakhs.
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On 10 April 2020 at 15:47
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75 Points Posted on 10 April 2020
Okay thank you both for resolving my query
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On 10 April 2020 at 16:40
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Student
23693 Points Posted on 10 April 2020
You're always Welcome Ashutosh Sir...
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On 10 April 2020 at 19:45
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"Do the Right Thing...!!!"
128157 Points Posted on 10 April 2020
You are welcome...
1 Reply
On 10 April 2020 at 19:47

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