There is some confusion regarding the new 5 Crore limit for Audit. Is it applicable from FY 20-21 or FY-19-20 ? My turnover is below 5 crores and its a proprietorship firm. Am I liable for Audit and also liable to deduct TDS?
Menu
Audit Limit for FY 19-20
Replies (10)
Quick Summary
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.
Now if you your cash receipts and payments is less than 5% of overall transaction, then you are not liable to get your books of accounts audited.
Liable to deduct TDS arises if your turnover exceeds RS.1 crore in last financial year
Now if you your cash receipts and payments is less than 5% of overall transaction, then you are not liable to get your books of accounts audited.
Liable to deduct TDS arises if your turnover exceeds RS.1 crore in last financial year
Thanks Rashmi. But what if we declared income under sec 44AD in the previous financial years prior to the financial year 19-20? Is the Audit applicable then?
From fy 19-20 itself. but it's conditions are very tough to follow.
If you have declared income u/s 44AD and now you want to audit then you can do so. But then you have to get your books audited for 5 years.
In other words you can't opt presumptive scheme u/s 44AD for 5 years
In other words you can't opt presumptive scheme u/s 44AD for 5 years
Thnx Rashmi. But my question is, whether the 5 crore rule for "No Audit required" is applicable for FY 19-20 even if I had opted for 44AD in FY 18-19 and FY 17-18 etc?
I mean does opting for 44AD in previous financial years prevent me from not going for an Audit for FY 19-20 as my turnover is below 5 crores and cash receipts and payments are also below the 5% threshold? Can I skip the Audit?
It is of no matter that you declared income u/s 44AD in earlier years.
If your turnover is below 5 crores & 5% threshold met then you can skip audit .
If your turnover is below 5 crores & 5% threshold met then you can skip audit .
Thanx Rashmi.
When we file the ITR returns without the Audit, is there a separate column in the ITR form that we submit which will indicate that we are filing the returns under the new 5 crore rule?
Yes you have to choose option in the ITR
Yes..found it in ITR 3. Thnx Rashmi. You have been a great help on this forum. Thank you so much.
Welcome..... Pleasure is mine.....
Recent Topics :
- Form 26A - System has encountered some technical p
- Tool to convert GST invoice PDFs into Excel —
- Revised or rectification or leave it?
- Private limited tax audit
- LTCG - SEC54
- Foreign remittance from our client for Co Working
- UDIN generation
- Reply plz guys
- Tax Deduction and Collection Account Number
- Where can students practice XAT PYQs effectively?
Related Topics :
CAclubindia
