Donati (Self occupation) (102 Points)
01 July 2021As per the new rule...
Audit is not required for Turnover <5Cr in FY 2020-21 & <10Cr in FY 2021-22 if
1. Cash Payment <5% of Total Payments
2. Cash Receipts <5% of Total Receipts
My query is...Is Audit required if only Cash Payments exceed the 5% limit of total Payments?
Please help.
Donati
(Self occupation)
(102 Points)
Replied 01 July 2021
Does the Payment for the calculation of 5% include
1. Remuneration/ Interest / Profit to Partners (transferred to capital a/c)
2. Depreciation
3. Bank Fixed Deposits of the firm.
4. Expenses made by Partner on behalf of the firm (adjusted in capital a/c)
Ankita Jain
(CA in practice)
(185 Points)
Replied 01 July 2021
Donati
(Self occupation)
(102 Points)
Replied 01 July 2021
The Turnover is less than15 lac. In this case, is Tax Audit mandatory if Cash Payments exceed 5% of total payment. .
Does the Payment for the calculation of 5% include
1. Remuneration/ Interest / Profit to Partners (transferred to capital a/c)
2. Depreciation
3. Bank Fixed Deposits of the firm.
4. Expenses made by Partner on behalf of the firm (adjusted in capital a/c)
Ankita Jain
(CA in practice)
(185 Points)
Replied 01 July 2021
CAclubindia
