Tax audit for fy 2020-21
One of my client deals in land development and for the financial year 2020-21 he has sold land amounting to Rs. 1,35,00,000/- but has incurred loss of Rs. 80,00,000/- due to construction costs of other land purchased.
I want to know is Tax audit required to be done in this case. He has not earned any profit that year.
Please help regarding this matter.
1.Total income after considering all heads of income exceeds maximum income not chargeable to tax. 2. Assessee is an individual
If assessee has no income under other heads besides business income and the total income for the assessee does not exceed the non taxable limit then tax audit is not applicable in such case.
The cash receipts are limited to 5% of Turnover and Cash payments are limited to 5 % of Aggregate payments.
Is tax audit applicable in this case?
No tax audit applicable.