F.y 20-21 audit limit

Page no : 2

Naman Garg (4 Points)
Replied 06 April 2021

You have to get your books audited as you are only declaring profit if 5% which पेस दें एस specified in sec 44 ad

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Someone (2 Points)
Replied 06 April 2021

Arvind ....
Audit is not applicable in your case

prabinkumarsaha (ca) (22 Points)
Replied 06 April 2021

Yes...

Gaurav Gupta (Article) (39 Points)
Replied 06 April 2021

You are required to get your books audited as per section 44AB(e) as your profits are lower than the deeming provisions of sec 44AD

CA Gopal Kabra (17 Points)
Replied 06 April 2021

Yes sir if you want to show profit below 6% (Bank Turnover) and 8% (Cash Turnover) then Audit is compulsory

2 Like

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parmanand (mother dairy) (171 Points)
Replied 06 April 2021

If you want to shown profit lower than 6% & turnover is 90 lakhs, file ITR 3 & there is no need to get your account audited. But you have to show all details accurately at time of filing ITR

CA Hemi Bhagat (proprietor) (31 Points)
Replied 06 April 2021

U/s 44AB the limit is Rs. 1crs. and if you have 95 % receipts which are through banking or digital channel then the limit is Rs.5 crs.

So u/s 44AB as such you are not eleigible for audit.

But since your income is only 5% of the turnover, you will have to get your books audited u/s 44AD which requires that if your income is less than 6%(for banking) and 8% for other receipts then you have get your books audited.

Hence you are liable to get your books of account audited u/s 43AD.

1 Like

M J V Shankar (Practicing Chartered Accountant ) (306 Points)
Replied 06 April 2021

You are required to get audited, if declared profit less than 8 or 6% respectively

SUJITH GUPTHA (articles) (92 Points)
Replied 06 April 2021

If you declare Income as per section 44AD than no need to get books of accounts audited if your turnover is within the threshold limit as mentioned otherwise you have to get your accounts audited if you want to declare Income at 5% of turnover even if your turnover is less than 1 crore

Sonal kataria (Paid assistant) (7 Points)
Replied 06 April 2021

If you have never declared income under 44ad since ay 2017-18 then audit won't be applicable to you. . but if you declared then if your total income is above maximum amount chargeable to income tax then yes you have to get your books audited

1 Like

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Mujeeb Doi (309 Points)
Replied 06 April 2021

In case you want to show your return as per 44AD or in previous year you had filed return as per 44AD then only, audit is compulsory, otherwise audit is not compulsory as your turnovet is not exceeding 90lakhs even if your net income is 5% of your turnover

1 Like

Kavita Kumari (article) (45 Points)
Replied 06 April 2021

If you file your ITR by showing minimum income @ 6% then need to file ITR-4 u/s 44AD. not required to get accounts audited. Further 6% is required to be paid in case bank transaction mode is used and 8% will be applicable in case turnover is other than bank.

Paras Lamba (3 Points)
Replied 06 April 2021

If u r showing net profit 8%or more of ur turnover u/s 44AD then u r not eligible for tax audit

Otherwise you have to get your accounts audited

RAVI AGARWAL (5 Points)
Replied 06 April 2021

Not mandatory

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Krishna Kumar (4 Points)
Replied 06 April 2021

NO TAX AUDIT IS NOT REQUIRED. But you need to maintain books of accounts. However, if you does not want to maintain books of account and wishes to opt Presumptive taxation scheme then you need to get accounts audited for declaring 5% profit.

Provided if you have earlier opted for Presumptive scheme and also eligible for presumptive scheme in AY then you have to get your accounts compulsory audit irrespective of turnover of you want to declare 5% profit margin.

Make decision wisely.