INCOME TAX AUDIT

jashwanth (vijayawada)     06 March 2021

If ur profit is below 8%/6% of turnover then u should be liable for audit.

Sourav (Student)     06 March 2021

Yes you are liable for tax audit

Chirag (Professional)     06 March 2021

No ,If you are opting for presumptive taxation under section 44AD then you are liable for tax audit ,turnover is exceeding INR 100 Lacs ,However If you opt for regular one ,then upto 500 Lacs of ( Subject to 95% of GR/GP are in electronic mode and not in cash ) audit is not required ,if you have already opt for 44AD in PY then you can't go with 44AD for this FY 2020-2021,( It will not consider as breach of condition of claiming less than 6%/8% or loss).

Naveen (student)     06 March 2021

If u don't opt for 44AD - presumptive tax and if ur cash receipts and payments are less than 5%, u r not liable for tax audit. Audit for Less than 8% or 6% rule applies only for 44AD people and since ur turnover is more than 2 crores u don't have option to choose 44AD.

So as long as ur ur cash receipts and payments are less than 5% of ur total receipts and payments and turnover is less than 5 crores, u r not liable for tax audit

anil jain (Partner)     06 March 2021

44 AD in not for above 2 crore.

Above 5Cr with 5%or less cash transactions, Tax Audit is must, then do not think about profit %age.