AUDIT LIMIT FY 2021-22

This query is : Resolved

NIRMAL DAVE (Querist)
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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)
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13 September 2022 No. Not liable...

NIRMAL DAVE

NIRMAL DAVE (Querist)
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14 September 2022 Thank You very much for your valuable reply sir.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 September 2022 You are welcome ..

NIRMAL DAVE

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

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