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Regarding Tax Audit and Income Tax Return

Prakash Chandra (191 Points)

10 October 2019

If Tournov 36 lakhs to 75 lakhs
Tax Audit compulsory
ITR 4 file under 44ad

Limit of GST and income tax audit

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4 Replies

Piali Roy Chowdhury (605 Points)
Replied 10 October 2019

Income Tax Audit u/s 44AB of the Income Tax Act of 1961 is required if Turnover in Business exceeds Rs. 1 crore or Gross Receipts in Profession exceeds Rs. 50 lakhs.

However no Tax Audit is required if ITR filed under Presumptive Taxation Scheme u/s 44AD of the Income Tax Act 1961.

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Shivam RC (Student) (23683 Points)
Replied 10 October 2019

•INCOME TAX AUDIT u/s 44AB :

1). For BUSINESS : When Turnover exceeds Rs. 1 crore.

2). For PROFESSION : When Gross Receipts exceeds Rs. 50 lakhs.

•GST AUDIT u/s 35(5) of the CGST Act 2017 read with Rule 80(3) of the CGST Rules 2017 :

When your "AGGREGATE TURNOVER exceeds Rs. 2 Crore".

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RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 10 October 2019

@ Mr Prakash Chandra.,

Tax audit not applicable if turn over less than 1cr...

Shivam RC (Student) (23683 Points)
Replied 11 October 2019

Since you have opted for PRESUMPTIVE TAXATION SCHEME, Tax Audit u/s 44AB of the Income Tax Act 1961 is not applicable even if your Turnover exceeds Rs. 1 crore, provided that it does not exceeds Rs. 2 crore.

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