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Question ID : 42188

Tax Audit

A individual 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 06, 2021

Filed Under DIRECT TAXES

Answer ID : 81378

Yes, the only condition is 95% of payments and receipts (both) are not in cash

Posted by SURAJ KUMAR CHOUDHARY on Dec 07, 2021
Answer ID : 81385

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

Posted by VINAY BHARGAV KUMAR G on Dec 10, 2021