Whether Tax audit applicable for a poultry Farm?
David (article Assistant) (1639 Points)
20 June 2020
If the total sales is more than 1 crore, whether it required for tax audit?
4 Replies
ATUL Y
(574 Points)
Replied 21 June 2020
A taxpayer is required to have a tax audit carried out if the sales, turnover or gross receipts of business exceed Rs 1 crore in the financial year(us44AB)
Sec 44AD provides special provision for computing profits and gains of business on presumptive basis. You need not to maintain proper accounting. Your net income is estimated to be @ 8% of your gross receipt/turnover. From F.Y. 2016-17, net income is calculated as @ 6% of gross receipts are received through digital mode of payments and @ 8% of gross receipts are received in cash.
Businesses, whose annual gross turnover/receipt does not exceeds Rs. 2 Crore are eligible for this scheme.(sec44AD)
Sec 44AD provides special provision for computing profits and gains of business on presumptive basis. You need not to maintain proper accounting. Your net income is estimated to be @ 8% of your gross receipt/turnover. From F.Y. 2016-17, net income is calculated as @ 6% of gross receipts are received through digital mode of payments and @ 8% of gross receipts are received in cash.
Businesses, whose annual gross turnover/receipt does not exceeds Rs. 2 Crore are eligible for this scheme.(sec44AD)
David
(article Assistant)
(1639 Points)
Replied 21 June 2020
Is there any exemption for agriculture? Is it poultry agriculture income? Whether it has to do tax audit?
ATUL Y
(574 Points)
Replied 21 June 2020
Income from Poultry Farming shall not be treated as agricultural Income and the same is not exempt under any other section. Income from Poultry Farming is taxable under the Income Profit and Gain from Business and profession
David
(article Assistant)
(1639 Points)
Replied 21 June 2020
OK. Thank you... What about other agriculture income?
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