TAX AUDIT TURNOVER LIMIT

Increased 5 cr turnover limit for tax audit with certain conditions applicable to FY 2019-20. Or from FY 2020-21.
Replies (5)
Quick Summary
This discussion clarifies the applicability of the increased 5 crore turnover limit for tax audits. It's confirmed that this new limit, introduced in Budget 2020, is effective from 1st April 2020. Therefore, it applies to the Financial Year 2019-20 (Assessment Year 2020-21) and subsequent years, provided certain conditions regarding cash transactions are met.

It's applicable from F.Y 2019-20 (i.e A.Y 2020-21)
Any circular ya notification for that. I think it was introduced in budget 2020 and will be applicable from FY 2020-21.

So pls help.
Yes, it was introduced in budget 2020 and it's applicable from 01.04.2020.
So, For F.Y 2019-20 's tax audit has been carried out in A.Y 2020-21 i.e after 01.04.2020.

So it's applicable for F.Y 2019-20.
Jo tax rates aaye hai wo applicable hoge for FY 2020-21 ie for AY 2021-22. So fir ye limit bhi waisebhi applicable hogi na...
New limit of 5 Crore is applicable for tax audit w.e.f 01.04.2020. Tax audit For F.Y 2019-20 is carried out in F.Y 2020-21 i.e after 01.04.2020.
So, this new limit is applicable to F.Y 2019-20 itself, not from F.Y 2020-21.

Income tax rate is for F.Y, declare in advance (i.e For F.Y 2020 -21 declared in Budget 2020 ) So, we can able to calculate and pay our advance tax liability according. But tax audit is required after year end in the Assessment year corresponding to that previous year.

For your reference, you can check new ITR form for F.Y 2019-20 (like ITR 3) in this is asked regarding turnover lesa than 5 crores and cash expenses/sale is less than 5 %of total expenses/sale ect........in AUDIT INFORMATION column of General info.Part.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details