Applicability of Tax Audit in case of partnership or proprietorship having turnover less than one crore and not following presumptive taxation

In case of individual or partnership firm, if the turnover of the assessee is less than Rs. 1 Crore and the assessee is not opting the presumptive taxation scheme despite of the assessee is eligible for opting the presumptive taxation scheme and therefore preparing its books of accounts but on the other side also showing net profit less than 6% or 8% then whether Tax Audit will be applicable or not on such assessee and if yes then under what clause? 

1 answer

Ravi Staff October 15, 2018

Presumptive Taxation under Sec 44AD is available for Individual , HUF, Firm (other than LLP) having turnover upto 2 crores.

Under Sec 44AB Clause (d) if such assesses go for lower tax as against presumptive taxation, they will have to get there books audited, provided there actual income should not be below basic exemption limit 


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