Turnover less than 1 crore & net profit less than 8

Net sales = 65 Lakh
Profit = only 2.5% of net sales
Tax audit Required or Not ???

Replies (4)
Quick Summary
This discussion addresses whether a tax audit is mandatory for businesses with net sales below 1 crore and a profit margin less than 8%. While a profit below 8% generally necessitates an audit, there are exceptions. If your total income falls below the basic exemption limit, an audit may not be required. Additionally, if you've previously declared income under Section 44AD, specific rules apply regarding audit requirements after the Finance Act 2016.

Required to get audit as profit is below 8%.

If you declared profit equal to or more than 8%, then no need to get your books audited.
If the total income does not exceed basic exemption limit, then tax audit is not required even if profit is less than minimum presumptive profit
Yes audit is required as profit is less than 8%

If previous years you declare  your income in sec 44AD then tax audit required. Otherwise no need to be tax audit after fiance act 2016.

See rule sec 44ad (4/5) 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register