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Profit below 6

28 July 2022

my turnover 1.4 cr..can i file return as loss or below 6% without audit.?and what if my turnover below 1cr?pls reply thanks in advance

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5 Replies

Shruti (Student ) (586 Points)
Replied 28 July 2022

In case of turnover of 1.4 cr (more than threshold limit of 1 CR) , audit is mandatory if profit declared is below 6% or 8% of turnover. IF turnover is less than 1 cr audit is not mandatory irrespective of the profits declared.

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MPR Sanjay Kumar (3098 Points)
Replied 28 July 2022

For example

Cash receipts Rs 90000

Cash payments Rs 1,80,000

in this scenario how to I calculate and identify it doesn't exceed 5% of Tax audit limit????

plse I need workouts clarification

Shruti (Student ) (586 Points)
Replied 28 July 2022

Cash receipts of 90, 000 should not exceed5% of total amount of receipts and cash payment of 1, 80, 000 should not exceed 5% of total amount of payments.

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MPR Sanjay Kumar (3098 Points)
Replied 28 July 2022

@ Honourable Shruti ,could you please tell me how you calculating ?? I need mathematical calculation plse explain me

Shruti (Student ) (586 Points)
Replied 28 July 2022

Suppose total reciept is 5,00,000 and cash reciept is 90,000.( 5lakh *5%=25 thousand )cash receipts is more than 5% of total reciept. In this case limit of 5 cr will not be applicable. And same calculation for payments to be done independently.

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