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F.y 20-21 audit limit

ARVIND (ACCOUNTANT) (131 Points)

03 April 2021

sir I am retail traders my turnover is 90 lac my income @ 5 percent then audit is compulsory in my case? please reply

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49 Replies

Mohanraj J (1217 Points)
Replied 03 April 2021

If u r going to apply business loan in the future, pls get Auditor Report for finalization of account

ARVIND (ACCOUNTANT) (131 Points)
Replied 03 April 2021

This is not my question please reply my query

Mohanraj J (1217 Points)
Replied 03 April 2021

Audit not compulsion for 90 lac. it is compulsory if crosses 1 cr

CA Akshay Poriya (job in industry) (329 Points)
Replied 03 April 2021

AS per section 44 AD of income tax act, if there is income which is lower than 6% of turnover in case all transaction through banking channels or less than 8 % of turnover in any other case, then he has to required prepare books of accounts and audit it.irrespective of turnover. here your turnover is 90 lacs and profit is @ 5% declaring then you need to get books of account audit compulsary.

6 Like

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 03 April 2021

Audit not required in your case

1 Like

CA Puja Sharma (Chartered Accountant) (5010 Points)
Replied 03 April 2021

No tax audit is required in your case.

2 Like

Kapadia Pravin (17264 Points)
Replied 04 April 2021

No tax audit is required if you are not on 44AD

2 Like

Ghanshyam Giri (member) (24 Points)
Replied 04 April 2021

If I file ITR when I have to show the income minimum 6%. What will i do in that case

Kapadia Pravin (17264 Points)
Replied 04 April 2021

In that case, file ITR4

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 04 April 2021

File ITR 4

CA Rashmi Gandhi (Chartered Accountant) (86500 Points)
Replied 04 April 2021

As per Sec 44AD you have to declare profit @ 8% in case of cash transaction, even transaction lesser than 5% of total receipts & payment then you can declare profit @ 6% . If you want to declare profit lower than it then you have to get your books audited compulsorily.

2 Like