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IT audit mandatory or not
out of the above question, Tax Audit is applicable if Turn Over exceeds 1cr.
| Originally posted by : Ashish Jain | ||
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Trading in tyre retreading materials |  |
U/s 44AB :
TAX AUDI applicable if Total sales, turnover or gross receipts exceed Rs. 1 crore in the FY.
If cash transactions are up to 5% of total gross receipts and payments, the threshold limit of turnover for tax audit is increased to Rs. 10 crores (w.e.f. FY 2020-21).
U/s 44AD :
Carrying on business which is declaring profits as per presumptive taxation scheme under Section 44AD If the total sales, turnover, or gross receipts do not exceed Rs. 2 crore in the financial year, then tax audit will not apply to such businesses.
just one correction, if your income is above the tax exemption limit, as per section 44AD(5), audit will apply if the profit percentage is below the prescribed limit that is 6% for non-cash transactions and 8% for cash transactions.
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