06 June 2021
My propritor ship GST firm has turnover of 22 lakhs during FY 2020 - 2021.and net profit is 1%• is Tax audit applicable in this case? Please reply?
07 June 2021
44AD/44ADA: Not required because taxable income does not exceed basic exemption limit. Normal (no 44AD/44ADA): Not required as the turnover threshold limit has not crossed.
24 September 2021
In that case Tax audit not applicable. You can file ITR 3 under normal assessment. (with books of accounts maintained). (NP below 6/8% will not be applicable here)
24 September 2021
Let me tell, your total income from business comes to around 11 Thousand only. which is below exemption limit. Though that criteria, may or may not apply here , but rest assured, there is no tax audit liability.
24 September 2021
My CA is Insisting for audit. My CA Point is net profit is below 8% so Tax audit becomes mandatory as per Income Tax law. If no audit is done there will be Penalty as per my CA view. Please advise How to convince my CA?
24 September 2021
If opted for 44AD, only then min 8% (or 6% as applicable) of turnover to be declared as profit. In your case, since 44AD is not opted for, no audit would be required up to a turnover of Rs.10 cr for FY20-21 if cash transactions are limited to 5% (however, if cash transactions are >5%, Rs.1cr would be the turnover limit for no-audit), even if the profit is 5% in this case.
25 September 2021
My net Income from Business is 6000 and interest Income from loan is 200000 so total Income is around 206000.proprietor of Business is Huf firm.
25 September 2021
As per sec. 44AD(5) of IT ..... (5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee to whom the provisions of sub-section (4) are applicable and ....... whose total income exceeds the maximum amount which is not chargeable to income-tax,........ shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB."
As the total income is below 2.50 lakhs.. which is the maximum amount not chargeable to income tax...... tax audit not applicable....
CAclubindia
