Celebrate CA Day with CAclubindia PRO. Use Code: CADAY10 Subscribe Now!

INCOME TAX AUDIT

06 March 2021

If my turnover is 5 crore in fy 2021 and all cash and receipts is less than 5% and profit is 8 lacs can I liable to tax audit

Reply
Follow
Share

5 Replies

jashwanth (CA-PRACTICE) (400 Points)
Replied 06 March 2021

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

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 06 March 2021

Yes you are liable for tax audit

Chirag (Professional) (1979 Points)
Replied 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) (334 Points)
Replied 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