Sec. 44AB(a) specifies the limit upto 10 Crs. only if both payments & receipts are below 5%.
If any or both are above 5 % the limit reduces to 1 Cr.
In above case when total turnover is around 3.15 Crs. & if cash expenses are above 5%, than tax audit will apply.
Sec. 44AB(a) specifies the limit upto 10 Crs. only if both payments & receipts are below 5%.
If any or both are above 5 % the limit reduces to 1 Cr.
In above case when total turnover is around 3.15 Crs. & if cash expenses are above 5%, than tax audit will apply.
If turnover of any business is up to 1 cr., whatever be percentage of expenses or receipts, tax audit not applicable.....
Subject to applicability of sec. 44AD(4) & (5) of the act......
Tax liability of over income earned not over turn over........
These data are only to clarify your doubts over 5%.
CAclubindia
