Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Tax audit limit for contractors

583 views

Save Share

ashima khurana

106 Points Posted on 13 September 2023

I am in work contract service.
my turnover is below 2 crore. please tell me income tax audit is applicable on me or not?

Replies (2)

Quick Summary

If your turnover as a contractor is below ₹2 crore, a tax audit might not be necessary. Generally, if cash payments are less than 5% of your turnover, or if you opt for the presumptive taxation scheme, you may be exempt. Declaring a profit of 8% or more under the presumptive scheme also usually avoids the need for a formal tax audit.

Radhey Shyam Jha

Student

1628 Points Posted on 13 September 2023

1. If the aggregate of all amounts received and Payment in cash, does not exceed 5% of the Turnover - Tax Audit Not Applicable

2. If The above condition is not satisfied and you are eligible for the presumption taxation scheme - Tax Audit Not Applicable