INCOME TAX FILLING

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This discussion addresses whether a transportation business with a turnover of 92 lakhs and a profit of 2.40 lakhs needs to file an income tax return (ITR) and undergo a tax audit for FY 2018-2019. While the profit is below the taxable threshold and ITR filing might not be mandatory based on income alone, a tax audit could still be applicable due to the profit margin. Given the turnover nearing 1 crore, filing is strongly advised to avoid potential notices from the Income Tax department, especially as they access GST data. Options include adopting the 44 AE Presumptive Tax or completing a tax audit.

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(Querist)
12 March 2020 CASE
FY 2018-2019
BUSINESS : TRANSPORTATION
TOTAL TURNOVER 92 LAC
PROFIT AS PER PROFIT AND LOSS ACCOUNT 2.40 LAC
WHETHER I SHOULD FILE ITR OR NOT
AND IS IT SUBJECTED TO TAX AUDIT
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
12 March 2020 Profit below taxable income so tax audit not applicable. Income below 2.50 lacs so ITR filing not mandatory.
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Eswar Reddy S

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Eswar Reddy S (Expert)
12 March 2020 Audit is applicable since the profit is less than 8%/6% / other rates applicable..Hence tax filing is mandatory
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Eswar Reddy S

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Eswar Reddy S (Expert)
12 March 2020 Income Tax dept get info from GST database.Non filing may result in notice from IT dept. Hope you are a registered tax payer under GST
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Eswar Reddy S

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Eswar Reddy S (Expert)
12 March 2020 The turnover is just nearing 1crore.High chance of selecting for scrutiny
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CA M.Rajni Parthasarthy-Nov19

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CA M.Rajni Parthasarthy-Nov19 (Expert)
15 March 2020 Adopt 44 AE Presumptive Tax option or get Tax Audit done & file your Return... no other Solution
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