![]() ![]() If income exceeds the maximum amount not chargeable to tax in the subsequent 5 consecutive tax years from the financial year when the presumptive taxation was not opted forĬarrying on business which is declaring profits as per presumptive taxation scheme under Section 44AD 5 consecutive years from when the presumptive tax scheme was opted FY 2020-21)Ĭarrying on business eligible for presumptive taxation under Section 44AE, 44BB or 44BBBĬlaims profits or gains lower than the prescribed limit under the presumptive taxation schemeĬarrying on business eligible for presumptive taxation under Section 44ADĭeclares taxable income below the limits prescribed under the presumptive tax scheme and has income exceeding the basic threshold limit.Ĭarrying on the business and is not eligible to claim presumptive taxation under Section 44AD due to opting out for presumptive taxation in any one financial year of the lock-in period i.e. 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. Total sales, turnover or gross receipts exceed Rs.1 crore in the FY We present the various categories of taxpayers below: Category of personĬarrying on business (not opting for presumptive taxation scheme*) We have categorised the various circumstances in the tables mentioned below:įinance Act 2020: The threshold limit of Rs 1 crore turnover for a tax audit is proposed to be increased to Rs 5 crore with effect from AY 2020-21 (FY 2019-20) if the taxpayer’s cash receipts are limited to 5% of the gross receipts or turnover, and if the taxpayer’s cash payments are limited to 5% of the aggregate payments.įinance Act 2021: With effect from 1st April 2021, the threshold limit of Rs 5 crore is increased to Rs 10 crore in case cash transactions do not exceed 5% of the total transactions. However, a taxpayer may be required to get their accounts audited in certain other circumstances. ![]() Who is mandatorily subject to tax audit?Ī taxpayer is required to have a tax audit carried out if the sales, turnover or gross receipts of business exceed Rs 1 crore in the financial year. Calculation and verification of total income, claim for deductions etc., also becomes easier.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |