One of my client has turnover of 2.05 crore for FY 2019-20, but his cash receipts and payments does not exceed 5% of total receipts and payment respectively.
Therefore, he is not liable for tax profit.
But the actual profit is Rs. 7 lac approx. Then whether in this case, I need to submit only ITR-3 (as he maintains books of account), because some consultants are saying that in this case there will be chances for assessment, so go for audit. But then under which section I should go for audit.
10 Replies
Krishna Chaudhary
(Accountant)
(4531 Points)
Replied 02 January 2021
Once the turnover exceeds one crore he is liable for tax audit. swim this case also your client is liable for tax audit whether received cash on non cash mode
Smit Shah
(524 Points)
Replied 02 January 2021
If earlier he use to show incone under 44AD then he Audit is liable
machavarapu mahesh
(27 Points)
Replied 03 January 2021
No need tax audit report,just prepare trading,p&l, balance sheet and submit in itr-3
Anmol Singla
(808 Points)
Replied 03 January 2021
Sir, thanx for your reply.
Further I want to now if assesee submit ITR under 44AD from AY 11-12 to AY 17-18 and done audit for AY 2018-19 and 2019-20, then what will be the case. Here 44AB(e) will be applicable?
Further I want to now if assesee submit ITR under 44AD from AY 11-12 to AY 17-18 and done audit for AY 2018-19 and 2019-20, then what will be the case. Here 44AB(e) will be applicable?
Smit Shah
(524 Points)
Replied 03 January 2021
No then if your turnover is within threshold limit prescribed under 44ab then no need to get audited your account.
Anmol Singla
(808 Points)
Replied 03 January 2021
Turnover is 2.05 crore and cash payment and receipt does not exceed 5% and further he submit ITR under 44AD from AY 11-12 to AY 17-18 and done audit for AY 2018-19 and AY 2019-20.
My view is that TAX Audit should not be applicable
My view is that TAX Audit should not be applicable
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