Income tax audit limit a.y.18-19

Tax queries 1209 views 5 replies

Rashmi

Accountant

140 Points Joined January 2013

Hi,

Can anyone help me, As far as my knowledge Income Tax Audit for A.Y.18-19 is above 2 Cr,

One of my relatives had audited is account last year due to income crossed threshold limit of 1 cr.

but this year he has a sales below 2 cr and not interested to go for a tax audit, I suggested him 44AD presumptive scheme, but he does not agree with me that he should file his future 5 years return under 44AD presumptive scheme only

I would be appreciated if you some expert can input their views on this

Regards

Rashami

Replies (5)

Ruchika Somani

Coaching and Practice in Tax Audit Law

4429 Points Joined June 2018

If he doesnt wish to go under 44AD then he need to get himself audited.

If turnover is > 1cr

RAJA P M

"Do the Right Thing...!!!"

128147 Points Joined January 2015

As per sec 44AB Tax Audit limit is 1cr...

In case Assessee (eligible assessee and eligible business) will be opt sec 44AD then He can avail the benefit of sec 44AD upto 2cr...

But, Without 44ad then Tax Audit applicable Rs 1Cr.

rama krishnan

12244 Points Joined May 2017

I fully agree with Mr. Raja's view

Rashmi

Accountant

140 Points Joined January 2013

Thank you all,

He did Audit for A.Y.17-18, but for A.Y.18-19 his income is less than 2 cr hence still he does not want to do the Tax audit can he file his return now even after the due date.

my question is: Is he eligible for the presumptive scheme?

I will convince him after your right suggestions.

Thanks in Advance

Rashmi

RAJA P M

"Do the Right Thing...!!!"

128147 Points Joined January 2015

Yes... If he is eligible and his business is eligible then he can go to opt presumptive taxation scheme.

But, Better to check out his eligibility and the Tax Payments as per sec 44AD...