Tax audit in income tax

Dear Gauri,
 

Please consider the following views:

A. There is one question that arises, Did you opt for the presumptive scheme in the previous years? if yes then please note the following:

1. it means you have chosen to opt-out of the scheme and you will not avail the benefit of the presumptive scheme in the next 5 Assessment year.

2. You should ensure to show complete details of profit & loss account and balance sheet items in ITR as you opt for filing normal scheme then the applicability of tax audit will not arise if your receipts is less than INR 50 Lakhs in case of the profession.

B. If you haven't opted for the presumptive scheme earlier, then please note the following views:

1. You can show your profit and no applicability of Tax Audit arises.

2. Tax Audit will arise in normal business if your receipts exceed INR 50 Lakh.

Further, please note the applicability of tax audit u/s 44AB(d):

• Declares income to be Lower than profit or gain so deemed to be profit or gain under section 44ADA (I.e. 50% of Gross Receipts).
• Income exceeds the maximum amount chargeable to income-tax.

Hence, in your case, the Tax Audit will not be applicable.

Do let us know in case of any concerns.

Dear Raj,

Yes, there is no restriction of 5 years applicable in section 44ADA.

@ Gauri, Please check this, In my view pointer A(1), you can avail the benefit of section 44ADA in any year as a lock-in period of 5 years is not applicable.

This one is applicable in section 44AD.