Income tax return query.

from last 4 years, firm is under tax audit. Due to covid, sales is low for FY 2020-21 and we are filing under presumptive taxation. query is when if sales goes up for upcoming years, can we move back to tax audit case.. knowing that we won't be able to choose presumptive for next 5 years.
Replies (5)
Quick Summary
This discussion addresses a query about switching between presumptive taxation and a tax audit for income tax returns. The user's firm is currently under tax audit but filing under presumptive taxation for FY 2020-21 due to low sales. They want to know if they can return to a tax audit case in upcoming years if sales increase, even with the restriction of not choosing presumptive for five years. The advice clarifies that exceeding a turnover of 2 crore automatically moves a business to a tax audit case, and it's not an 'opt-out' situation. If turnover is within limits, opting for presumptive is mandatory; otherwise, it's considered opting out.

If turnover goes above 2 Crs. you have no option of opting for presumptive assessment by law itself, and as such it is not treated as opting out of the scheme. Whenever turnover is within the said limit, you are bound to opt it, otherwise it will be treated as opting out from that AY.

@ Dhirajlal : sir for 2020-21 turnover is less than 1 cr but for upcoming years, we are expecting sales of more than 2cr. let's say for 2021-22, sales is rs 3 cr, is it OK to move back to tax audit assuming cash transaction constitute more than 10%

Yes, it is by default......... u/s. 44AB(a) of IT act.

What is the turnover?
CY turnover is around 50 lacs. previous years more than 3 crs

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details