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APPLICABILITY OF TAX AUDIT IF INDIVIDUAL DECLARE PROFIT @ 8%

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Suresh S. Tejwani

proprietor

1204 Points Posted on 05 October 2021

IF AN INDIVIDUAL HAS TURNOVER MORE THAN 1 CRORE AND DECLARES PROFIT @ 8% , THEN IS IT MANDATORY TO UNDERGO TAX AUDIT ?

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Quick Summary

This discussion addresses whether an individual with a turnover exceeding £1 crore and declaring an 8% profit is required to undergo a tax audit. Generally, a tax audit is mandatory if turnover surpasses £1 crore. However, there are proposed changes to increase this threshold to £5 crore from the 2020-21 assessment year (covering the 2019-20 financial year).

Rama chary Rachakonda

Master in Accounts & high court Advocate

9620 Points Posted on 05 October 2021

A taxpayer must mandatorily undergo a tax audit of his/ her books of accounts if the sales, turnover, or gross receipts exceeds Rs 1 crore in a financial year. The threshold limit of Rs 1 crore is proposed to be increased to Rs 5 crore with effect from AY 2020-21 (FY 2019-20.