Account audit

Tax queries 587 views 4 replies

saurabh goyal

self employed

103 Points Joined December 2011

Hello,

I want to know that if I 'll do trasaction (both Cr & Dr) of more than 15 lacs in my saving account . Then is it required that my account will go for audit . As i 'm not from commerce background . So i don't understand the meaning of Account Aduit. Actully one of my friends told me that if yo 'll have trasanction of more than 15 lacs in your account then your account needs audit . please clarify the meaning of account audit.Kindly also provide information regarding what is the maxium limit of doing transaction in saving account .

kindly provide infomation.

Replies (4)

Yogesh Bhandari

CA FINAL Student

429 Points Joined July 2011

As per my view in your case, the only audit is applicable i.e., Tax audit.

And, Tax audit is required if your gross receipts or turnover exceeds 15 lakh ( in case of profession) or 60 lakh (in case of business)......

Keval Ponkiya

CA CS MBA(Fin.) M.Com. L.L.B.

223 Points Joined May 2011

Saurabh Sir,

Don't worry at all the audit is not at all needed !!!

because audit criteris is based on turnover or receipt and not on accounting entries,

but if this entries are of your profession then audit is required as it exceeds 10 lakh. Otherwise no audit is required but there may be chance of SCRUTINY by the Income-tax department if this entry is not of your profession !!!

JUST TO MAKE YOU AWARE !!! SIR G