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Tax audit turnover limit F.Y. 2018-19

Suraj (735 Points)

26 March 2019

Dear all,

How much is the Tax audit turnover limit F.Y. 2018-19 (A. Y. 2019-20) ? Any document to support ?

Thanks,
Suraj

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10 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 26 March 2019

No change; same as FY 2018-19 ...

1) If total sales, turnover or gross receipts exceeds Rs. 1 Crore in any previous year, in case of business; or

Note: Provided that this section is not applicable to the person, who opts for presumptive taxation Scheme under Section 44AD and his total sales or turnover does not exceed Rs 2 crores.

2) If gross receipts exceeds Rs. 50 Lakhs in any previous year, in case of profession.

2 Like

Suraj (735 Points)
Replied 26 March 2019

Thanks Dhirajlal ji.

1 Like

Siddharth Mane (Tax Consultant) (283 Points)
Replied 19 September 2019

@ Dhirajsir,

Turnover ka arth/ vyakhya kya hai ?

Turnover means the only ur Fees part in the Bill, Net Bill amount i.e. amt excluding GST or Gross total of Bill including GST of Proffessional fees??

My client is Professional by business and his Fees earned in P&L income side is less than 50 Lakhs but including GST which reflects Duties & Taxes in BalanceSheet, goes above 50Lakhs.

Is my client applicable for Income Tax Audit ?

(Guest)

Your client will have to get his tax audit done. Turnover means gross receipts inclusive of all the taxes.

1 Like

Suresh Thiyagarajan (Student) (3986 Points)
Replied 10 October 2019

1. For the purpose of determining the T.o limit for sec 44AB, the GST component should also be included.
2. Sec 145A clearly states that sales should also include any kind of tax attached to it.
3. Going by sec 145A, GST should also form part of your T.O for the purpose of sec 44AB.
Please correct me if the above solution has an alternative view.

1 Like

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 10 October 2019

According to Section 44AB of the Income Tax Act 1961 (updated upto 2019) the Tax Audit limit for

Business

Rs. 1 Crore. It means an assessee need to be audited under Sec.44AB if his annual gross turnover/receipts in business exceeds Rs. 1 Crore. This provision is applicable from F.Y. 2016-17 (A.Y. 2017-18) & onwards. It means the limit of Tax Audit u/s 44AB is Rs. 1 Cr. for Business in FY 2018-19 / AY 2019-20.

Profession

Rs. 50 Lakh. It means an assessee need to be audited under Sec 44AB if his annual gross receipts in profession exceeds Rs. 50 Lakh. This provision is applicable from F.Y. 2016-17 (A.Y. 2017-18) & onwards. It means the limit of Tax Audit u/s 44AB is Rs. 50 Lakh for Profession in FY 2018-19 / AY 2019-20.

(Guest)

Originally posted by : Suresh Thiyagarajan
	1. For the purpose of determining the T.o limit for sec 44AB, the GST component should also be included. 2. Sec 145A clearly states that sales should also include any kind of tax attached to it. 3. Going by sec 145A, GST should also form part of your T.O for the purpose of sec 44AB. Please correct me if the above solution has an alternative view.

Agreed!

1 Like

(Guest)

Is the Tax Audit turnover limit for AY 2020-21 also the same?

shahyar husain (1235 Points)
Replied 26 December 2020

Has there been any new changes introduced in tax audit turnover limit for the coming A.Y.

Neethi V. Kannanth (.) (19015 Points)
Replied 18 January 2021

As per section 44AB

In case of a person carrying on profession, tax audit is required if his gross receipts in profession exceeds Rs. 50 lakhs in the previous year

In case of every person carrying on business is required to get his accounts audited , if his total sales, turnover or gross receipts in business exceeds Rs. 1 crore in the previous year. However, with effect from 01/04/2020, that is from assessment year 2020-21,The threshold limit has been revised to increase from Rs. 1 crore to Rs. 5 crore if the following conditions are satisfied –

1] His aggregate of all receipts in cash during the previous year does not exceeds 5 % of such receipts.

2] His aggregate of all payments in cash during the previous year does not exceeds 5 % of such payments.