Tax audit

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whether gross receipts or turnover u/s 44AD, 44AE and 44AF will qualify for tax audit. let us suppose that gross turnover under all the three sections exceeds Rs.40 lacs, is there any requirement of tax audit

AI Summary

Clarification on Tax Audit Requirement for Sections 44AD, 44AE, and 44AF: Income Below Presumptive Basis Needs TAR A query was raised regarding the requirement of a tax audit for gross receipts or turnover under sections 44AD, 44AE, and 44AF if they exceed Rs. 40 lakhs. The response clarified that separate limits apply for determining tax liability under these sections. A tax audit report (TAR) is required if the income claimed is less than the specified amount in the respective sections, regardless of the total turnover. For example, if income under section 44AF is lower than the presumptive basis, a TAR is needed for that section, even if the total turnover is below Rs. 40 lakhs.