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

AI Summary

Developer Queries TDR Sales in Turnover for Tax Audit; Expert Clarifies Section 44AD Doesn't Apply to Companies A developer inquired whether the sale of Transferable Development Rights (TDR) should be included in turnover for tax audit applicability. They also asked about the tax audit limit for a private limited company and whether an audit is necessary if profits are below 8% or if there is a loss. An expert confirmed that TDR sales are included in the tax audit limit, which is 1 crore, and noted that the Section 44AD provision of declaring an 8% profit does not apply to companies. The inquirer expressed gratitude for the clarification.