DOUBT please tell me Dear persons

As per section 44 AB of tax audit the person who engaged business their cash receipts and cash payments exceeds  5 % percentage means and cash payments exceeds 5% means ...TAX AUDIT WILL APPLICABLE...iam I Right sir???



Up to 5% cash receipts and cash payments means no tax audit will applicable??? Iam I right



plse




Sir kindly please check me sir,if any mistake please teach me sir
Replies (5)
Quick Summary
This discussion clarifies the applicability of Section 44AB tax audit concerning cash transactions. It explains that if cash receipts and payments exceed 5% of total transactions, the turnover threshold for mandatory tax audit reduces to Rs. 1 crore. However, if cash transactions are 5% or less (meaning over 95% are through banking channels), the threshold increases to Rs. 10 crores for businesses.

​​​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.  

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details