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TAX AUDIT applicability

Shyam Agarwal (5 Points)

13 October 2020

Turnover below 1 Cr, Profit below 6%/8%. Maintains Books of accounts. Is Tax Audit mandatory?

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7 Replies

gaurav parlani (2 Points)
Replied 13 October 2020

No as per Sec 44AB tax audit is not mandatory.

sumanth (Student CA IPC / IPCC) (60 Points)
Replied 13 October 2020

In my opinion Tax Audit is applicable if the net total income exceeds Basic exemption limit and the net profit is below 6% /8% even if the turnover is below 1 crore

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rama krishnan (12234 Points)
Replied 14 October 2020

No... tax audit not applicable

CA. Manish Kuamr Chandaliya (Chartered Accountants) (75 Points)
Replied 14 October 2020

Tax audit applicable because profit is below limit

Amit Khare (204 Points)
Replied 14 October 2020

Tax audit is reqd as profit is below the profit stipulated u/s 44ad

ayusmita (Tax consultant) (5885 Points)
Replied 16 October 2020

Tax audit is applicable above 1cr or say 1 cr is the basis or say mandatory rule but
secondary rule is if a person profit is above 50 lakh or little bit lower then if he or she wants to do audit or wants to maintain books of account they can did fully depends upon the client