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Tax Audit Applicability Proprietor firm

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Kishore Nuthalapati

Accountant for multiple small entities

171 Points Posted on 10 June 2023

Hi Sir/Madam

we are looking after Accounts of a proprietor firm who are in to house keeping and securities

For Financial year 2022-23 Turnover is 5.6 crores

all receipts and payments are in non cash mode only like all are done through internet banking

Please advise whether Tax audit can apply or not

Thanks

Replies (2)

Quick Summary

This discussion seeks clarification on whether a proprietor firm, with a turnover of ₹5.6 crores for FY 2022-23 and all transactions conducted via internet banking, is subject to a tax audit. The query highlights that all receipts and payments were non-cash. The initial response suggests a tax audit may not be required, though further details might be needed for a definitive answer.