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Income tax audit limit

11 August 2020

For financial year 2019-20 what is Income tax audit for turnover limit and minimum net profit limit for traders and professionals ??

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 11 August 2020

1...Tax audit applicable for person carrying on business, if his total sales, turnover or gross receipts, as the case may be, in business exceeds one crore rupees.

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, than this limit is 5 Crores.

2.. if carrying on profession than if his gross receipts in profession exceed fifty lakh rupees.

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CA ABHAY GUPTA (Practice) (3230 Points)
Replied 11 August 2020

Turnover for business is 5 crore with condition that cash receipts and payment should not be more than 5% of total receipts and payments. for professional turnover is 50 lacs....

Bhaumik pandya (224 Points)
Replied 11 August 2020

Any net profit limit sir?? like minimum 8%

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 11 August 2020

If you filed return under presumptive Taxation scheme.(i.e u/s 44AD/44ADA/44AE ect.) than there is a minimum profit criteria, if you are showing profit less than that..than you are required to get your account audited u/s 44AB