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Whether audit is required or not u/s 44ad?

09 January 2015

T/O RS. 35 LAKH. IF PROFIT @ 5% 1.75 LAKH. WHETHER AUDIT IS REQUIRED OR NOT AS PROFIT IS BELOW THE BASIC EXEMPTION LIMIT FOR FY 13-14. whether books of a/c is required to be maintained as profit is 5%. Thanks in advance. Waiting for ur opinion.

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4 Replies

pallav (still a learner....) (938 Points)
Replied 09 January 2015

yes...Tax Audit is required as income is less than 8%

1 Like

Kavyaa (Budding CA) (107 Points)
Replied 09 January 2015

Tax audit

tax audit income slab

for business income=Rs.1crore

for professional income=Rs.25lakhs

your query is not clear whether the income is by way of business or profession. Assuming your income is business income, the tax audit is not applicable as it did not exceed Rs.1crore.

Maintaining books

Books of accounts need to be maintained u/s44AA where the income(profit) by way of business or profession exceed Rs.1,20,000 or where the turnover exceeds Rs.10,00,000.

In your case, the above condition is fulfilled and you need to maintain proper books of accounts.

1 Like