Tax audit applicability 1

Page no : 2

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 07 July 2022

Turnover is not alone the criteria for tax audit ,

Hope one can avail presumptive Taxation even if the turnover exceeds 1 crore for business

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CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 07 July 2022

Rama Krishnan , sir please refer Section 44AB (d)

rama krishnan (12234 Points)
Replied 07 July 2022

@ rashmi ma'am, section 44AB(d) is in respect of professional income. pls see the query raised by the queriest..

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 07 July 2022

Read it
44AB. Audit of accounts of certain persons carrying on business or profession.- Every person,—

(a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds sixty lakh rupees in any previous year ; or

(b) carrying on profession shall, if his gross receipts in profession exceed fifteen lakh rupees in any previous year; or

(c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AE or section 44BB or section 44BBB, as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any previous year; or

(d) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AD and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his business and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,
get his accounts of such previous year audited by an accountant before the specified date and furnish by that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed :

rama krishnan (12234 Points)
Replied 07 July 2022

@ rashmi ma'am, the provisions of 44AB posted by you has been superseded/amended by the finance acts starting from finance act 2016. what you have posted was applicable only up-to ay 2016-17. the provisions of section 44AB as amended by finance act 2022 is posted below, PLS have a look ma'am

Audit of accounts of certain persons carrying on business or profession.

44AB. Every person,—

(a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees in any previous year 89[***]:

90[Provided that in the case of a person whose—

(a) aggregate of all amounts received including amount received for sales, turnover or gross receipts during the previous year, in cash, does not exceed five per cent of the said amount; and

(b) aggregate of all payments made including amount incurred for expenditure, in cash, during the previous year does not exceed five per cent of the said payment,

this clause shall have effect as if for the words "one crore rupees", the words "five crore rupees" had been substituted; or]

(b) carrying on profession shall, if his gross receipts in profession exceed fifty lakh rupees in any previous year; or
(c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AE or section 44BB or section 44BBB, as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any previous year; or

(d) carrying on the profession shall, if the profits and gains from the profession are deemed to be the profits and gains of such person under section 44ADA and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his profession and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year; or

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Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 10 July 2022

👍🏻👍🏻

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 10 July 2022

You have not capability of matching my points that's why you are doing all senseless thing like putting thumbs after every post.
Use your knowledge to ear point not only thumbs.