SECTION 44AA (Audit Reqired)

[MAYUR DODIYA]

DEAR EXPERT

If we are maintaIn Books of Account as per Income Tax Actsection 44AA and our Books profit Show less Than  8 percent can audit reqeired. (as per 44AB)

pls advice

thanks

AI Summary

Clarification on tax audit requirements under Sections 44AA, 44AB: No audit if profit is below 8% and income non-taxable. A discussion on a forum addresses whether a tax audit is required under Section 44AA and 44AB of the Income Tax Act when a business's profit is less than 8%. An expert clarifies that an audit is not needed if the profit is below 8% and the income does not exceed the taxable limit, provided the business is not covered by Section 44AD. Another expert notes that if profit after deductions is below the prescribed percentage, an audit is required. It is also mentioned that partnerships with nil or negative income are not liable for a tax audit.