Dear Sir
please suggest we have audit books under 44AB.where in books of account one entry unsecured loan decline by CA. unsecured loans Rs.86000 received from a individual person in a Cash.
Applicability of Tax Audit under section 44AB
A taxpayer must mandatorily undergo a tax audit of his/ her books of accounts if the sales, turnover, or gross receipts exceeds Rs 1 crore in a financial year.
The threshold limit of Rs 1 crore is proposed to be increased to Rs 5 crore with effect from AY 2020-21 (FY 2019-20. The following condition applies to the taxpayer’s cash receipts and payment:
- cash receipts are limited to 5% of the gross receipts or turnover
- cash payments are limited to 5% of the aggregate payments
A taxpayer might have to comply with tax audit provisions under other scenarios as well. The following are all such scenarios in which an income tax audit is mandatory:
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