Tax audit

A person is carrying out a business and has turnover of 93,00,000 and net profit is less than 8% ,computed as per the books of accounts.
Can he show less than 8% profit in normal return or is there any requirement for tax audit and under which section?

He|she have to gone for audit

R u computing profits and gains of business on  presumptive basis ? If you follow the calculation on presumptive basis then follow the provison on the same. Else follow the normal tax Audit Provision. Howeer in your case business turnover is less than 1 crore, so tax audit is not applicable.

Sec 44AD provides special provision for computing profits and gains of business on presumptive basis. You need not to maintain proper accounting. Your net income is estimated to be @ 8% of your gross receipt/turnover. From F.Y. 2016-17, net income is calculated as @ 6% of gross receipts are received through digital mode of payments and @ 8% of gross receipts are received in cash.Businesses, whose annual gross turnover/receipt does not exceeds Rs. 2 Crore are eligible for this scheme.

Income Tax Audit Limit :::Starting financial year FY 2016-17 (income tax return filing for AY 2017-18), the turnover limit for businesses which can opt for presumptive income scheme has been increased from Rs 1 crore to Rs 2 crore.For other businesses who do not opt for presumptive income scheme, audit limit will remain Rs 1 crore.There has been no change in the audit limit for businesses who are not opting for presumptive income scheme.

100% digitalisation is compulsory or only the part can be to eligibility of 6% ??

6% tax is applicable only if the business does 100% Digital transactions.

Digital Transactions include payment received by cheque or through any other digital means

Thanks

Thanks

income can be declared partially @ 6% for digital transactions and @ 8% for non digital transactions

you need not for tax audit .you should follow presumptive scheme as your turnover below 2 crore but you shall show profit 8% of your turnover and not less then that. if you want to show lower profit you have to maintain proper books of accounts and need for audit of such accounts arise.

Ram Krishnan- 

6% tax is applicable only if the business does 100% Digital transactions.

You need to pay @ 8% for all transactions if you dont do 100% Digital transactions.

You cann't declared partially @ 6% for digital transactions and @ 8% for non digital transactions.

Hope its clear.

Right Ca Amitav Das

attn: mr. Amitav & vishal...

41[Provided that this sub-section shall have effect as if for the words "eight per cent", the words "six per cent" had been substituted, in respect of the amount of total turnover or gross receipts which is received by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account during the previous year or before the due date specified in sub-section [1] of section 139 in respect of that previous year.]

here it's unequivocally mentioned "in respect of the amount of total turnover or gross receipts and not as "in respect of total turnover or gross receipts"

so according to me, 6% and 8% can be claimed simultaneously in respect of digital and cash transactions respectively

Yes there is clearly mention that  had been substituted, in respect of the amount of total turnover or gross receipts which is received by an account payee cheque or an account payee bank draft or use of electronic clearing