In case of Business
1) If a person is having turnover/ sales / gross receipts of under 1cr in an FY and his net profit is less than 6% does his account is liable to get audited or not?
2) If a person having turnover of under 5cr in an FY and 98% of Payment & Receipt is via banking channel and his net profit is less than 6%. Does his account is liable to get audited or not?
3) What is minimum and maximum audit threshold turnover and net profit limit?
1. Tax audit is not required as turnover is less than 1 crores rupees.
2. In this case also tax audit is not applicable as payments and receipts are 98% in online mode and 2% in cash. Further also turnover is less than 5 crores rupees.
3. If payments and receipts are above 5% in cash then tax audit is applicable even if turnover is less than 5 crores rupees. And in case under presumptive taxation if profit is less than 8% of turnover or 6% of turnover then audit is also required u/s 44AD
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