Tax audit or 44ad

259 views 10 replies

Joshua Dsouza

160 Points Joined March 2017

dear sir or madam
Last year I had filed ITR under 44ad for turnover ₹70lakhs.

This year my turnover is 1.50cr .

whether tax audit applicable or I can continue 44AD?

Replies (10)

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Yes... You can continue with 44ad.

CA Rashmi Gandhi

Chartered Accountant

86505 Points Joined April 2011

Limit for opting 44AD is Rs. 2 crores and you can continue to opt if turnover is 1.5 as said by RAJA PM

Joshua Dsouza

160 Points Joined March 2017

I have one doubt... turnover limit of 1cr for tax audit for whom it's applicable??

Total sales, turnover or gross receipts exceed Rs.1 crore in the FY If cash transactions are up to 5% of total gross receipts and payments, the threshold limit of turnover for tax audit is increased to Rs.10 crores (w.e.f. FY 2020-21)

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Originally posted by : Joshua Dsouza
	I have one doubt... turnover limit of 1cr for tax audit for whom it's applicable??

For Your this question...

It's applicable to who can't opt sec 44ad. Means, Who is file his return with sec 44AA. Then the Tax Audit limit is 1cr.

CA Rashmi Gandhi

Chartered Accountant

86505 Points Joined April 2011

For audit limit is 1 crore but in case assessee opt for presumptive taxation u/s44AD then limit ,was 2 crores and from the financial year 24-25, it is increased to 3 crores

Alliance Tax Experts

Tax Practitioner

155 Points Joined April 2018

If the total sales, turnover, or gross receipts surpass Rs. 1 crore in the financial year, and cash transactions constitute up to 5% of the total gross receipts and payments, the turnover threshold for a tax audit is elevated to Rs. 10 crores (effective from the financial year 2020-21).

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Originally posted by : Alliance Tax Experts
	If the total sales, turnover, or gross receipts surpass Rs. 1 crore in the financial year, and cash transactions constitute up to 5% of the total gross receipts and payments, the turnover threshold for a tax audit is elevated to Rs. 10 crores (effective from the financial year 2020-21).

Okay...

What about if cash transactions 5.1%....???