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Is Audit Required for Turnover between 0-2 cr AY 2020-21 ?

SURANA (PROPRIETOR) (515 Points)

23 October 2020

Partnership Firm
AY 2020-21

Turnover : 1.05 Cr
Cash Receipt / Payment : Less then 5%
Net profit after Remuneration and Interest : Less then 6%
Opted Presumption Taxation in last 5 years : NO

Some CA are saying Audit Required… and some saying No.
Now is there any clarification from ICAI or CBDT on it.

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4 Replies

MAHARAJA SELVA ESWAR (285 Points)
Replied 23 October 2020

If net profit is greater than 6% , no need of audit .
when there is lesser profits ,deemed profits will be inapplicable and even while you are filing itr 4, the portal will intimate you to audit before you file your return when the profits are lesser than 6%
So audit will be reqd .

1 Like

JATINDER KUMAR (Accountant) (3662 Points)
Replied 23 October 2020

As per my opinion, Audit is required

stapler (bus) (282 Points)
Replied 25 October 2020

Originally posted by : MAHARAJA SELVA ESWAR
	If net profit is greater than 6% , no need of audit .when there is lesser profits ,deemed profits will be inapplicable and even while you are filing itr 4, the portal will intimate you to audit before you file your return when the profits are lesser than 6%So audit will be reqd .