One friend of mine has turnover in his business is 80 lakhs in 2021-2022. He wants to show his profit at the rate of 5 % . This is his first year of business. Is he required for filling his income tax return under tax audit provision u/s 44AB or simply he would file his income tax return under normal method and shows profit @ 5%.
Please help.
A 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. However, a taxpayer may be required to get their accounts audited in certain other circumstances.
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