Question ID :
42187
Income Tax Audit for FY 2020-21
A Taxpayer is having Turnover of Rs 2.5 crores and his net profit is 3% of sales and more than 95% transactions of receipts and payment are through bannking channel.
The understanding of Taxpayer is as under.
(1)Since Turnover is less than Rs 10 Crores and more than 95% transactions of receipts and payment are through bannking channel , Income Audit is not required.
(2) Also Audit is not required even profit is 3% i.e. is less than 8% becuase requirement of 8% is for presumptive scheme. u/s 44AD and section 44AD is applicable upto Turnover of Rs 2 crores. Here section 44AD is not applicable because Turnover is more than Rs 2 crores .
In both above cases Income Tax Audit is not require. Kindly confirm.
Posted by
samirkumar gokulbhai kasvala
on
Dec 04, 2021
Filed Under
DIRECT TAXES
What is the status of the Tax Payer?
Posted by
D SANTHANAM on
Dec 06, 2021
Answer ID :
81386
Not required as both receipts and payments in cash less than 5 percent.
Posted by
VINAY BHARGAV KUMAR G on
Dec 10, 2021