Tax audit limit for FY 2020-21

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For the financial year 2020-21, the tax audit limit for businesses is £5 crore if cash transactions are within 5% of total receipts/payments, otherwise it's £1 crore. For professions, the limit is £50 lakhs. Presumptive taxation applies if net profit falls below 8% (or 6% for specific professions) or 50% of turnover. Voluntary audits may also offer benefits.

DIVYESH JAIN

DIVYESH JAIN (Querist)

08 July 2020 Dear Sir/Mam,

I want to know what is the tax audit limit incase of those who are in Business and those in Profession for this financial year FY 2020-21.

Regards,
Divyesh Jain

Eswar Reddy S

Eswar Reddy S (Expert)

09 July 2020 Tax audit limit for Business: 5crores if cash receipts & payments doesn't exceed 5% 1crore limit if cash receipts exceeds 5% Tax Audit limit for Profession: 50lakhs Presumptive taxation: Tax audit applicable if the net profit is less than 8%/6% or 50% of the turnover Other: One can voluntarily get audited for few benefits of audit

Eswar Reddy S

Eswar Reddy S (Expert)

09 July 2020 CA Students, CA Members,CMA Students /Members and other commerce Professionals get a chance to win prize money upto 1lakh. check this https://youtu.be/iLKbSrD6Ym8

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

09 August 2020 The threshold limit of Rs 1 crore for a tax audit is proposed to be increased to Rs 5 crore with effect from AY 2020-21 (FY 2019-20) if the taxpayer's cash receipts are limited to 5% of the gross receipts or turnover, and if the taxpayer's cash payments are limited to 5% of the aggregate payments.

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