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Tax Audit Limit for AY 21-22

Bala Ganesh (14 Points)

07 April 2021

whish is turnover limit for tax audit financial year 2020-21

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CA HARSHITA AGARWAL (FCA) (71 Points)
Replied 07 April 2021

50 Lacs for professional 1Crore for Business, but still if you want to declare u/s 44AD then upto 2Crores no audit required If you have all the receipts and payment i.e. more than 95% through cheque or any other electronic mode then no need for audit upto 5crore.

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CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 07 April 2021

Turnover limit for AY 21-22 increases from 5 crores rupees to 10 crores rupees provided that all cash payments and receipts should be 5% of total and remaining should be 95% in online mode.
Otherwise if conditions is not fulfilled then turnover limit should be considered as 1 crores rupees and for 44AD turnover should be upto 2 crores rupees

Ankit Neema (2742 Points)
Replied 08 April 2021

Mr. Sourav please check the details again, Limit is increased for the AY 22-23, from 5 Cr to 10cr.

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 08 April 2021

Yes, it was a mistake, limit is 5 crores upto AY 21-22

PaylessIndia Skyfortune Tradin (2 Points)
Replied 08 April 2021

But if the profit is less than 6% what is the Audit thresh hold ?

For stock market speculation filing ITR3

STCG +(no turn over is calculated as stocks bought in delivery treated as investment)

Tax turn over in Intraday cash equity + F&O= is around Rs3 lakhs (absolute sum pf profit /loss +option premium)

Profit is less than 6% .(loss marginally)

Can we file itr3 showing STCG + all others (INTRADAY +F&O))under business income with out tax audit & claim some minimum expenses ?

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 08 April 2021

U/s 44AD, If you show Profit less than 6% of turnover then tax audit is applicable, turnover limit for presumptive taxation is 2 crores rupees.
For filing speculation income file ITR 3 return by showing all the F&O transactions plus Intraday transactions under business income