Sales Turnover Limit for the ay 20-21
This query is : Resolved
30 September 2020
Respected Sir
Sales turnover for the year ending March 20 is 1.67 Crores. Whether tax audit is required ? Please guide me sir,
Sales turnover for the year ending March 20 is 1.67 Crores. Whether tax audit is required ? Please guide me sir,
30 September 2020
If your business is an eligible business u/s 44AD then you can opt for 44AD and no need to do tax audit but you have to show your profit @ 8%(6% in case of bank receipts) as the turnover limit specified in the section 44AD is 2 crores
However, in section 44AB to the threshold limit, for a person carrying on business, is increased from Rs. 1 Crore to Rs. 5 crore in case when cash receipt and payment made during the year does not exceed 5% of total receipt or payment, as the case may be. In other words, more than 95% of the business transactions should be done through banking channels.
If the above two cases are not applicable to you then the limit is Rs. 1 crore
For more info, you can check the income tax website FAQs - https://www.incometaxindia.gov.in/Pages/faqs.aspx?k=FAQs+on+Tax+Audit#:~:text=This%20provision%20is%E2%80%8B%20not,1%20Crore%20to%20Rs.
However, in section 44AB to the threshold limit, for a person carrying on business, is increased from Rs. 1 Crore to Rs. 5 crore in case when cash receipt and payment made during the year does not exceed 5% of total receipt or payment, as the case may be. In other words, more than 95% of the business transactions should be done through banking channels.
If the above two cases are not applicable to you then the limit is Rs. 1 crore
For more info, you can check the income tax website FAQs - https://www.incometaxindia.gov.in/Pages/faqs.aspx?k=FAQs+on+Tax+Audit#:~:text=This%20provision%20is%E2%80%8B%20not,1%20Crore%20to%20Rs.
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