Avail of benefit of sec44ad

D.G. Mohan (Querist) 07 May 2017 This query is : Resolved
Our parntership firms turnover is less than Rs 1 cr and net profit is less than 8%. If I do not avail sec 44AD can audit of accounts be avoided.
Is there any way to avoid audit of accounts. Since availing sec44AD is like pay more tax or audit accounts. Even Rs 10 lakhs turnover firm has to audit a/cs.

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R.K Nanda (Expert) 08 May 2017
contact tax lawyer.

ramesh (Expert) 08 May 2017
If your payments and receipts done digitally you will not have any problem. In the event of paying salary etc to working partners apart from profit it's better to have accounts audited. In the current scenario it's better to keep all the papers intact and decide yourself which is best suited to you.
If the profit doesn't exceed the limit of 6% or 8% as declared by you, sec 44ad can be availed.