Tax Audit Applicability

[Bipin Parmar]

Dear Experts,

Whether sale of TDR (by developer) counted in Turnover for the purpose of applicability of tax audit? If yes what would be tax audit limit for pvt. ltd co? If it declares profit less than 8% or say loss then will it be required to get it's accounts audited?

Thanks

Bipin

[ARVIND JAIN]

Yes TDR sale is to be counted for Tax Audit Limit which is ₹ 1 Cr and Sec 44AD provision of declaring 8 % profit is not applicable for Co.

[Bipin Parmar]

Thank you sir for your response.

AI Summary

TDR sale counts as turnover, triggering tax audit obligations for private companies; presumptive profit rule does not apply. Sale of Transferable Development Rights (TDR) by a developer must be included in turnover for assessing tax audit applicability. For a private limited company, TDR receipts are aggregated with other receipts to determine whether the statutory tax audit threshold is exceeded. The presumptive profit benchmark of eight percent is not available to companies; therefore, reporting profit below that benchmark or a loss does not exempt a company from tax audit if turnover (including TDR proceeds) exceeds the threshold.