For a proprietorship business, employing 15 people, building software as per client requirement, what is the limit for getting Tax audit done?
All transactions are digital.
Can someone please guide me?
Thanks in advance.
Sanket (13 Points)
30 December 2021For a proprietorship business, employing 15 people, building software as per client requirement, what is the limit for getting Tax audit done?
All transactions are digital.
Can someone please guide me?
Thanks in advance.
CA Aakarsh Jain
(CA)
(10230 Points)
Replied 30 December 2021
Sanket
(13 Points)
Replied 30 December 2021
Thank you Sir,
However I am being told, that software development is a Profession, and it is a proprietorship firm, so the limit of 50 Lakh of Professionals will be applicable for Tax Audit. Is that right? or it should be 10 crores only.
CA Aakarsh Jain
(CA)
(10230 Points)
Replied 30 December 2021
Vikas Gupta
(Tax Executive)
(530 Points)
Replied 30 December 2021
Software development is a profession and hence U/s 44AB(b) if gross receipts exceeds Rs 50 lacs during the year, tax audit would be mandatory.
CAclubindia
