Dear sir
I filed my ITR with turnover above 1 CR. and show profit more than 10% now I received notice of defective return and they say to file audit report
Now I don't understand why I need to audit my account when threshold limit for audit is 2 CR. for ay 2019-20
I filed my itr in form ITR3 if they need because of this then what should I do now
please help ASAP
Thanks
Notice is rightly received.
The tax audit turnover limit is 1 crore only under 44AB
The 2 crore turnover limit (without audit) us when you opt for presumptive section 44AD for business income.
How have you declared profit in ITR3 ?
as regular business income or under iitem 61 in , I think, for 44AD
If you not chosen 44AD then tax audit is most and now huge penalty will also have to be paid for failure to carry out and submit tax audit report.
CAclubindia
