Presumptive Scheme or Tax Audit

Hi,

1- The company I am working with is a contractor for construction business, for the F.Y. 19-20 we had tax Aduit due to turnover threshold, but for the last F.Y. 20-21 our company manage cross 98 lakhs only, our CA insisting for Tax audit, when we have profit around 15 lakhs, but my Boss asking me to find the way for not doing audit, that because we are neither crossed the threshold limit nor suffering from a loss, but this year(F.Y.21-22) it will be more than the threshold limit, so my question is can we file our income tax return under presumptive scheme, or we can  still file regular return without going for an audit as we are not coming under any statutory obligations. (Note- Cash withdrawals or payments are less than 5 lakhs during the year)

 

2- My Boss's having another concern in his brothers name which running under loss since 3 years not having business more than 10 lakhs per year and still having a loss of 12 lakhs, can we filed his income tax under presumptive scheme for F.Y. 20-21.

Thank you.

Rashmi

 

 

Replies (3)
Quick Summary
This discussion explores whether a construction proprietorship firm that had a tax audit in FY 19-20, but had turnover below the threshold in FY 20-21, can file under the presumptive scheme or a regular return without an audit. It also addresses a separate proprietorship experiencing losses, inquiring about presumptive scheme eligibility. The advice suggests a regular return without audit is possible for FY 20-21 if statutory obligations aren't met, and the presumptive scheme may apply to the loss-making business, though losses cannot be carried forward.

Are you working in Pvt. Ltd co., or firm?

Give full details........ what you mean by company?

Thank you sir,

I am working with a proprietorship firm, and all mentioned companies are proprietorship, please guide sir, your valuable inputs are most welcome sir.

In the 1st case...you can file for regular Income Tax Return without tax audit for FY 2020-21.

In the 2nd case I am assuming that the proprietorship is in your Boss' brother's PAN...he can file return under presumptive scheme if his business is not an agency business and he does not receive commission or brokerage. Also he won't be able to carry forward the Rs. 12 lakhs loss.

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