Purchases exceed 1 cr

If u r not opting for presumtive taxation and ur income exceeds below taxable limit, then u must go for tax audit

tax audit is applicable if your sales exceed 1 cr in case of business. in case of professions gross receipts exceed 50 lakh.

Thx

I hv one more question

suppose turnover is less than 1 crore
and total income is less than 2.5 lacs


but loss from business (actually more than 2.5 lacs )

Do I need a mandatory tax audit to report this loss in my ITR . Loss is from f& o trading .

I want to c/f my loss .

Never opt for presumptive ...filing 1st time.

No there is no need of tax audit and u can carry forward your loss to the next year.

will deptt allow me to c/f such huge loss which is much higher than my current year total income, without tax audit
as in future I will get credit of this loss when I will be in profitable position

Is this below 2.5 lac limit tax audit exemption for everyone or for those who use 44AD.

if an assessee states its income less than 8% incase of business. He is liable to tax audit. Can refer 44AD

@ sajan shukla

u mean every f& o trader is under compulsory tax audit if he report loss even if his total income do not exceed 2.50 lacs.

on a safe hand it shall be done

Tax Audit applicability is based on sales turnover criteria.

In case of loss from f n o , you need to undergo audit. Reason being f n o business comes u/s 44AD presumptive scheme. This, if you show profit % less than that mentioned as per law, you are liable for audit.

Please make strict note that the turnover working for F n o business is different and does not mean entire contract value. So accordingly do turnover working and if profit is less than prescribed then do tax audit.

@ Raj C Doshi

turnover is less than 1 cr taking sum of fav plus unfav difference

total income is below 2.5 lacs
however f& o loss is more than that

Many CA and experts were of the opinion tax audit not required because assesee total income below 2.5 lacs irresepective of loss amount.
Filing ITR 1st time so Never use 44 AD earlier.

one more query is -Is there no difference between Eligible and Covered)

Please guide.