Question ID :
40782
44AB Tax Audit F.Y. 2018-19 A.Y. 2019-20
The assessee - Milk Distributor
In F.Y. 2018-19 deposited cash more than Rs. 50 Lakhs in Current A/c. - shown in SFT.
Turnover in F.Y. 2018-19 - Rs. 85 Lakhs. Net Profit - below 8% and below Rs. 2.50 Lakhs (Basic Exemption Limit)
Whether Tax Audit is applicable?
Posted by
Hunny Badlani
on
Aug 17, 2020
Filed Under
DIRECT TAXES
Answer ID :
80684
No, Tax audit is not applicable. As per section 44ab(e) every person is liable to audit if carrying on the business shall, if the provisions of sub-section (4) of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,]. So. if income is less than the basic exemption limit and turnover is less than 1cr. so there is no need to get the books audited.
Posted by
SHUBHAM SONI on
Aug 17, 2020