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Is Audit Required for Turnover between 0-2 cr AY 2020-21 ?

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SURANA

PROPRIETOR

526 Points Posted on 23 October 2020

Partnership Firm
AY 2020-21

Turnover : 1.05 Cr
Cash Receipt / Payment : Less then 5%
Net profit after Remuneration and Interest : Less then 6%
Opted Presumption Taxation in last 5 years : NO

Some CA are saying Audit Required… and some saying No.
Now is there any clarification from ICAI or CBDT on it.

Replies (4)

Quick Summary

This discussion explores whether a partnership firm with a turnover between £0-£2 Cr for Assessment Year 2020-21 requires a statutory audit. Conflicting advice from Chartered Accountants highlights the confusion surrounding the applicability of presumptive taxation under Section 44AD, particularly when net profits are below 6%. The consensus leans towards an audit being required if presumptive taxation wasn't opted for and turnover exceeds £5 Cr, but the specific scenario of lower profits and non-opt-in to presumptive tax remains a point of contention.

MAHARAJA SELVA ESWAR

285 Points Posted on 23 October 2020

If net profit is greater than 6% , no need of audit .
when there is lesser profits ,deemed profits will be inapplicable and even while you are filing itr 4, the portal will intimate you to audit before you file your return when the profits are lesser than 6%
So audit will be reqd .

JATINDER KUMAR

Accountant

3662 Points Posted on 23 October 2020

As per my opinion, Audit is required

stapler

bus

307 Points Posted on 25 October 2020

Originally posted by : MAHARAJA SELVA ESWAR
	If net profit is greater than 6% , no need of audit .when there is lesser profits ,deemed profits will be inapplicable and even while you are filing itr 4, the portal will intimate you to audit before you file your return when the profits are lesser than 6%So audit will be reqd .