Tax Audit Applicability Esrar

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If your business turnover for FY 22-23 exceeded 3 Crores, you may still avoid a tax audit if both cash receipts and cash expenditures are 5% or less of your total turnover. If these conditions are met, you can file your Income Tax Return (ITR) under normal assessment, likely using ITR 3, and continue to declare income under Section 44AD. However, if cash transactions exceed the 5% threshold, a tax audit will be mandatory.

Esrar Ahmed

Esrar Ahmed (Querist)
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02 August 2023 There is a person doing business and he was filing income under 44AD as the turnover is less than 2 Crores. And for the current FY 22-23 his turnover is more than 3 Crores. Can i file the ITR returns without Audit as per the new las of 5CR.

If Audit is not applicable then in which ITR we have to file can we take the Income in 44AD only???

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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02 August 2023 He can file ITR without audit if his cash receipts as well as cash expenditures are less than or equal to 5 % of total receipts and expenditures respectively. Otherwise, tax audit will be applicable.
He can file ITR 3 under normal assessment.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 September 2024 Good Luck.

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