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Audit related

13 February 2020

in the budget govt announce for non audit if below 5 cr turnover for traders but my queries is receipt and payment of 5% cash treated separately or combine and it was implemented from FY 19-20 AY 20-21?

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5 Replies

sabyasachi mukherjee (26047 Points)
Replied 13 February 2020

@ surinder
pls specify...

surendra jain (91 Points)
Replied 13 February 2020

5% cash is for receipt and payment are combine or in seprearte head for non audit if turnovers below 5 cr which was announced in budget and from which FY it will effect

rama krishnan (12234 Points)
Replied 13 February 2020

Your audit threshold limit will be 5 crs if during the f. y. your cash receipts is less than 5% of turnover and your cash payments is less than 5% of turnover . it's applicable from a y. 2021-22

surendra jain (91 Points)
Replied 13 February 2020

It will applicable on below 2 cr turnover also

anirudh (student) (178 Points)
Replied 13 February 2020

Ear Surendra,
Tax audit limit is 5cr for business persons if

1) aggregate payments in cash doesn't exceed 5% of total payments( cash +bank) . and
2)aggregate receipts in cash doesn't exceed 5% of total receipts(cash +bank)
it is applicable for A.Y 20-21 (I.e., This F.Y)

I hope you understand

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