APPLICABILITY OF TAX AUDIT FOR A.Y. 2022 - 2023

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies tax audit applicability for AY 2022-23. If your profit from F&O business is less than 8% and other business income exceeds the basic exemption limit, a tax audit may be required unless specific conditions are met. If your total cash transactions are below 5% and turnover is under £10 crore, no audit is typically needed, and you can file ITR 3 with maintained books of accounts.

sunil c

sunil c (Querist)
Follow

13 June 2022 Sir/Ma'am,
If the Profit from F & O Business is less than 8% and Income other than F & O Business exceeds Basic Exemption Limit. Is Tax Audit Applicable in this case? Please Guide.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
Follow

13 June 2022 Audit is applicable as you are not declaring prescribed income u/s 44AD. However as your complete transactions are in form other than cash, you can declare 6% income.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

16 June 2022 What is the turnover? Whether sec. 44AD applied in any preceding year/s?

sunil c

sunil c (Querist)
Follow

16 June 2022 Turnover is more than 2 crore and 44AD was not applied in any previous year.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

16 June 2022 If total cash transaction are below 5%, Tax audit limit is 10 crs. No audit applicable in this case. File ITR 3 with books of accounts maintained.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!