F.y 20-21 audit limit

Quick Summary
If you're a retail trader with a turnover of 90 lakh and declaring a profit of 5%, you generally need to get your accounts audited. While the general turnover limit for audits is 1 crore, Section 44AD of the Income Tax Act requires an audit if your declared profit is less than 6% (for banking transactions) or 8% (for cash transactions) of your turnover. To avoid an audit, you can declare a profit of at least 6% or 8% respectively, or file under ITR-4. If you haven't opted for Section 44AD in previous years and maintain proper books of accounts, you might be able to file under ITR-3 without an audit.

Mr. Arvind if you show minimum 8% profit, you can avoid tax audit
Audit is complusory for you

In case you do not opt for showing income u/s 44AD, then tax audit is not compulsory for you but is suggested to get tax audit done. And in case you had opted to income disclosure u/s 44AD, then tax audit is compulsory.

Audit under section 44AD is compulsory in your case as the NP is less than 6%. If you offer anything less than 6% and file return, immediately you get defective return notice under 139(9) for not attaching audit report as lesser income is offered.

As your income is less than 6%or 8% then audit required in your case

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER

Anupam Parashar & Co.

Ghaziabad

CA Final

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details