F.y 20-21 audit limit

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.

If you are maintaining complete books of accounts and have not filed return under section 44AD FOR last 3 years then file ITR FORM3 without tax Audit. otherwise you have option to file itr under section 44AD without audit declaring income @ 6% or 8% as mentioned in various replies above.

I would suggest you to bifurcate your income as received in cash and bank. then calculate
6% on banking transactions
8% on cash transactions

if you show 5L then that's lower than above percentage hence audit shall be applicable. to avoid audit you can go for 44AD(6/8%) and avoid audit.

If you have not opted to file returns under 44AD during the previous financial year then no audit is required.

Profit declare 6% no needs for audit

In your case you are not required for audit as per turnover clause 44AB as limit is 1cr. but your profit is less than 44AD Limit which is 8% so you are required for audit.

Audit not required your case upto the turnover of 5cr.

You don't need to have your books audited if you are declaring income more than 6% or 8%. there is one more condition which says, if in any previous year you opted for 44AD, and you opt out from 44AD in preceding previous years, then you need to get your books of accounts audited for next 5 previous years immediately preceding the previous year in which you opt out from 44AD. simple language me bola jaye to, agr apne AY 2020-21 me 44AD opt kiya tha or abi apka profit 8%/6% se km hai, to apko AY 2021-22, AY 2022-23, AY 2023-24, AY 2024-25 and AY 2025-26 me audit krvani compulsary hai as per 44AD(e). if in case, you have any query, feel free to contact us. Write us on cavipuldhamija @ gmail.com.

Yes in ur case it is mandatory as u r showing 5% income

As per Section 44AD of the income tax Act that if Net Profit is less than 6% of turnover in case of turnover going through banking channels or if Net profit is less than 8% of turnover in any other case of banking channel than books of account should berequired U/S 44AA and gets the books audited .

As per Section 44AD of the income tax Act that if Net Profit is less than 6% of turnover in case of turnover going through banking channels or if Net profit is less than 8% of turnover in any other case of banking channel than books of account should berequired U/S 44AA and gets the books audited .

Audit not required in case of turnover less than 1 crore and declaring profit..

First of all, is it safe to claim benefit of section 44AD.

```Do all traders generally take benefit of 44AD?```

Because if you do not continuously disclose income u/s 44AD for five years, the trader can not again take benefit u/s 44AD for next five years

Its requires in ur case if you opted 44AD

Not mandatory