AUDIT LIMIT FY 2021-22

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies audit requirements for FY 2021-22. For a turnover of ₹1.22 crore with all transactions via bank and profit below 8%, an audit is not mandatory, especially if presumptive taxation under Section 44AD hasn't been used previously. Even with turnover under ₹1 crore and profit less than 8%, if cash transactions exceed 5% but presumptive taxation wasn't opted for before, an audit is still not required.

NIRMAL DAVE

NIRMAL DAVE (Querist)

13 September 2022 Dear All,

I have turnover of 1,22,50,000/- in FY 2021-22. All the transaction are done through bank. Both the payment and receipt in cash does not exceeds 5% of the total payment and receipt respectively.

But my profit arrives at Rs. 4,22,220/- (i.e. less than 8% of gross receipt).

I have not opted for presumptive assessment u/s. 44AD of the act, anytime earlier.

In the above case am I liable to gets my account audited?

Thanks
Nirmal

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 September 2022 No. Not liable...

NIRMAL DAVE

NIRMAL DAVE (Querist)

14 September 2022 Thank You very much for your valuable reply sir.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

14 September 2022 You are welcome ..

NIRMAL DAVE

NIRMAL DAVE (Querist)

16 September 2022 Sir One more query regarding audit limit

What if my turnover is less than 1 Crore and my profit is less than 8% of turnover.

I have not opted for presumtive taxation u/s 44AD in any of previous years?

But my cash payment/receipt exceeds 5% of total receipts and payments respectively.

Please guide whether in this situation tax audit is mandatory?

Thanks
Nirmal

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

18 September 2022 As presumptive scheme u/s. 44AD was never opted earlier, and being turnover less than 1 Cr; tax audit not applicable...

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