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TAX AUDIT TURNOVER LIMIT

nikita SHAH (chartered accountant) (194 Points)

26 August 2020

Increased 5 cr turnover limit for tax audit with certain conditions applicable to FY 2019-20. Or from FY 2020-21.

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5 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 26 August 2020

It's applicable from F.Y 2019-20 (i.e A.Y 2020-21)

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nikita SHAH (chartered accountant) (194 Points)
Replied 26 August 2020

Any circular ya notification for that. I think it was introduced in budget 2020 and will be applicable from FY 2020-21.

So pls help.

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 26 August 2020

Yes, it was introduced in budget 2020 and it's applicable from 01.04.2020.
So, For F.Y 2019-20 's tax audit has been carried out in A.Y 2020-21 i.e after 01.04.2020.

So it's applicable for F.Y 2019-20.

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nikita SHAH (chartered accountant) (194 Points)
Replied 26 August 2020

Jo tax rates aaye hai wo applicable hoge for FY 2020-21 ie for AY 2021-22. So fir ye limit bhi waisebhi applicable hogi na...

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 26 August 2020

New limit of 5 Crore is applicable for tax audit w.e.f 01.04.2020. Tax audit For F.Y 2019-20 is carried out in F.Y 2020-21 i.e after 01.04.2020.
So, this new limit is applicable to F.Y 2019-20 itself, not from F.Y 2020-21.

Income tax rate is for F.Y, declare in advance (i.e For F.Y 2020 -21 declared in Budget 2020 ) So, we can able to calculate and pay our advance tax liability according. But tax audit is required after year end in the Assessment year corresponding to that previous year.

For your reference, you can check new ITR form for F.Y 2019-20 (like ITR 3) in this is asked regarding turnover lesa than 5 crores and cash expenses/sale is less than 5 %of total expenses/sale ect........in AUDIT INFORMATION column of General info.Part.