Turnover less than 1 crore & net profit less than 8

22 July 2021

Net sales = 65 Lakh
Profit = only 2.5% of net sales
Tax audit Required or Not ???

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4 Replies

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 22 July 2021

Required to get audit as profit is below 8%.

If you declared profit equal to or more than 8%, then no need to get your books audited.

CA Raj Doshi (Practising CA) (8924 Points)
Replied 23 July 2021

If the total income does not exceed basic exemption limit, then tax audit is not required even if profit is less than minimum presumptive profit

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 23 July 2021

Yes audit is required as profit is less than 8%

Lalit Singh (accounts manager) (29 Points)
Replied 14 September 2021

If previous years you declare your income in sec 44AD then tax audit required. Otherwise no need to be tax audit after fiance act 2016.

See rule sec 44ad (4/5)

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