Income tax Audit for FY 2020-21

samkasvala (proprietor) (120 Points)

04 December 2021  

A Taxpayer is having Turnover of Rs 2.5 crores and his net profit is 3% of sales  and more than 95% transactions of receipts and payment are through bannking channel. 

The understanding of Taxpayer is as under. 

(1)Since Turnover is less than Rs 10 Crores and more than 95% transactions of receipts and payment are through bannking channel , Income Audit is not required. 

(2) Also Audit is not required even profit is 3% i.e.  is less than 8% becuase requirement of 8% is for presumptive scheme. u/s 44AD and section 44AD is applicable upto Turnover of Rs 2 crores. Here section 44AD is not applicable because Turnover is more than Rs 2 crores .

In both above cases Income Tax Audit is not require. Kindly confirm.