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Income tax query

deepak (PCS) (430 Points)

28 September 2019

Can any one let me know if our one proprietor provide services and his turnover of service is 85 lac then audit is required or not?

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7 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 28 September 2019

What type of service ? nature of business . and Have you before in the last five year Tax under presumptive Income scheme under Section 44AD or 44ADA .

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deepak (PCS) (430 Points)
Replied 28 September 2019

No we have filing itr-3 and want to know turnover limit for audit

Suresh Thiyagarajan (Student) (3986 Points)
Replied 28 September 2019

1. If you are engaged in the business then limit for tax audit will be Rs.1 crore.
2. If you are engaged in the services then limit for the purpose of tax audit will be Rs.50 lakhs.
3. Since you have mentioned it as a service limit of Rs. 50 lakhs will be applicable for you. Make sure you are carrying on profession specified under sec 44AB. Tax audit will be applicable for you since your T.O is more than Rs. 50 lakhs.
Please correct me if the above solution has an alternative view.