TaxTMI 
TaxTMI 
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If we are maintaIn Books of Account as per Income Tax Act section 44AA and our Books profit Show less Than 8 percent can audit reqeired. (as per 44AB)
pls advice
thanks
SECTION 44AA (Audit Reqired)
30 Dec 2013 
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Tax audit requirement applies when presumptive profit falls below the prescribed rate and total income exceeds taxable threshold.
Audit under the tax audit provision arises when a taxpayer claiming actual net profit below the presumptive percentage also has total income exceeding the taxable threshold; if excluded from the presumptive scheme and turnover remains under the audit threshold, audit is not required. Profit for this test is computed after allowing all deductions and adjustments, including depreciation and adjustments under provisions such as S.40A(ia) and S.43B. Partnership firms with nil or negative income were noted as generally not liable for audit in the forum responses. (AI Summary)
Audit under the tax audit provision arises when a taxpayer claiming actual net profit below the presumptive percentage also has total income exceeding the taxable threshold; if excluded from the presumptive scheme and turnover remains under the audit threshold, audit is not required. Profit for this test is computed after allowing all deductions and adjustments, including depreciation and adjustments under provisions such as S.40A(ia) and S.43B. Partnership firms with nil or negative income were noted as generally not liable for audit in the forum responses. (AI Summary)