Latest Query & Reply

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.