Sunday, 5 July 2020

Applicability of TAX AUDIT for Financial Year 2019‐20 (A.Y.2020‐21)




 

Business Assessee (INDI / HUF / Firm)

1st condition                             2nd Condition                         3rd Condition

Turnover

Net Profit > 8% or 6% of

turnover (u/s 44AD)

All cash receipts > 5% of

total Receipts

All cash payment > 5%

of total payments

Audit U/s

* 6% net profit incase of amount of total turnover or gross receipts received through banking channel / digital means

 

Upto 1 Crore

No

NA

NA

Yes 44AD(e)

Yes

NA

NA

No

 

 

 

1‐2 crore

Yes

No

No

No

Yes

Yes

Yes

Yes 44AB(a)

Yes

Yes

No

Yes 44AB(a)

Yes

No

Yes

Yes 44AB(a)

No

Irrelevant

Irrelevant

Yes 44AB(a)

 

 

2 ‐ 5 crore

NA

No

No

No

NA

Yes

Yes

Yes 44AB(a)

NA

Yes

No

Yes 44AB(a)

NA

No

Yes

Yes 44AB(a)

 

More than 5 Crore

NA

NA

NA

Yes 44AB(a)

 

For Professionals

Turnover

Net Profit > 50% of turnover

(u/s 44ADA)

All cash receipts > 5% of

total Receipts

All cash payment > 5%

of total payments

Audit U/s

> 50 Lacs

NA

NA

NA

Yes 44AB(b)

 

< 50 Lacs

< 50% (sec 44ADA)

NA

NA

Yes 44AB(d)

< 50 Lacs

> 50%

NA

NA

No

 

Note :‐

Receipts includes Capital contribution, all income, sale of assets, loan taken or loan received back etc Payments includes drawings, all expenses payment, purchase of assets, loan repaid or loan given etc

 

Clause

44AB(a)                        Business Turnover Exceed 1 crore

44AB(b)                        Professional Gross receipt exceed 50 lacs

44AB(c)‐i                      Income less than Deemed income u/s 44AE 44AB(c)‐ii                                     Income less than Deemed income u/s 44BB 44AB(c)‐iii                                     Income less than Deemed income u/s 44BBB 44AB(d)                                     for section 44ADA

44AB(e)                        for section 44AD

44AB(3)                        Audited under any other law


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