DOUBT please tell me Dear persons

​​​As per section 44AB, following persons are compulsorily required to get their accounts audited :

1.  A person carrying on business, if his total sales, turnover or gross receipts (as the case may be) in business for the year exceed or exceeds Rs. 1 crore. This provision is​ not applicable to the person, who opts for presumptive taxation scheme under section 44AD​ and his total sales or turnover doesn’t exceed Rs. 2 crores.

Note: The threshold limit, for a person carrying on business, is increased from Rs. 1 Crore to Rs. 10 crores in case when cash receipt and payment made during the year do not exceed 5% of total receipt or payment, as the case may be. In other words, more than 95% of business transactions should be done through banking channels.

2.  A person carrying on profession, if his gross receipts in profession for the year exceed Rs. 50 lakhs.

 

@ honourable Dhirajlal sir ,suppose my receipt and payments exceeding 5% means??? required to audit????

Your query is incomplete without turnover of the business.

If either of cash receipts or cash payments exceed 5% of the total, your turnover limit reduces to 1 Cr.

Bit of none of these exceed 5% then turnover limit goes to 10 Crs.

@ My honourable dhiraj Lal sir,


Case 1: Mr X having turnover up to 1 crore ,receipts and payments does not exceed 5% means tax audit applicable??

case 2: Mr X having turnver 4 crore , receipts and payments exceeding 5% ,in this scenario tax audit applicable?


case: 3 Mr X having 10 crore , recipts and payments exceeding 5% now required??



these scenario types cases I need sir ??


% declaration everybody telling how they calculating ??

1. No.

2. Yes

3. Yes.