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Question ID : 42187

Income Tax Audit for FY 2020-21

A Taxpayer is having Turnover of Rs 2.5 crores and his net profit is 3% of sales and more than 95% transactions of receipts and payment are through bannking channel. The understanding of Taxpayer is as under. (1)Since Turnover is less than Rs 10 Crores and more than 95% transactions of receipts and payment are through bannking channel , Income Audit is not required. (2) Also Audit is not required even profit is 3% i.e. is less than 8% becuase requirement of 8% is for presumptive scheme. u/s 44AD and section 44AD is applicable upto Turnover of Rs 2 crores. Here section 44AD is not applicable because Turnover is more than Rs 2 crores . In both above cases Income Tax Audit is not require. Kindly confirm.

Posted by samirkumar gokulbhai kasvala on Dec 04, 2021

Filed Under DIRECT TAXES

Answer ID : 81376

What is the status of the Tax Payer?

Posted by D SANTHANAM on Dec 06, 2021
Answer ID : 81386

Not required as both receipts and payments in cash less than 5 percent.

Posted by VINAY BHARGAV KUMAR G on Dec 10, 2021