Whether Tax audit required or not

WHY REQUIRED TAX AUDIT?

Originally posted by : Brahma nanda Agrawal
	Tax audit is not compolsury for Firm.But i think you know what else can be done so better ask exact query so that you can get help because all knowledgeable person have no time to entertain unnecessary query.I think You got your answer. Why tax audit required is sound not good

Yeahh... Good reply.

But., Querist can ask it with his confirmation and He is just missed a word "I have A doubt"....

So, Cool down and Reply....

Tax Audit in case of firm is required when net profit of firm is below 8% of turnover as per section 44AD presumptive income. 

So in above case there is loss so required audit of books under section 44AB. 

Originally posted by : sidhigiri
	Partnership Firm  having Turnover Rs 40 lakh net loss 14000 audit require or not?   thanx

Turonver less than 2 crores and the net profit declared is less than the limit prescribed. (6% or 8% as the case may be) Hence, the assessee should get his books of accounts audited under section 44AB only if the income exceeds the maximum amount not chargable to tax. 

In your case, assuming that the firm has got no other head of income, this firm is not liable to audit under section 44AB. 

No need tax audit if file u/s 44AA if Loss return...

Also no need Tax Audit if File u/s 44AD(5) if Loss return

Agreed with the reply of @ Vaishnavi Ganesh