If
Turnover of the Private Limited Company is Rs. 30 Lakhs Can we fill the IT
Return Claiming less than 8% Net Profit of the Turnover without filling Audit
Report U/s 44AB?
Reply
As per section 44AB of Income Tax Act, 1961, an assessee is
liable to get his accounts audited (tax audit) by a chartered accountant
mandatorily, if in the previous year the person is carrying on business and his
total sales/turnover exceedsRs.1crore.
As the turnover of above mentioned private limited company is
less than Rs.1crore, tax audit is not applicable irrespective of percentage of
net profit on turnover.