THRESHOLD LIMIT FOR 44AB TAX AUDIT FOR FY 2019-20, Income Tax

[MVK TAXAUDIT]

WHAT IS THE THRESHOLD LIMIT FOR 44AB TAX AUDIT FOR FY 2019-20. WHETHER IT IS 1 CRORE OR 5 CRORE. WHAT IS THE PROFIT PERCENTAGE THAT HAS TO BE DECLARED IF IT IS 5 CRORE?

Posts / Replies

[PAWAN KUMAR]

dear sir,

the turnover is now 5 crore in previous year.

profit percentage is 8 for non-digital transaction, 6 percentage for digital transaction.

[CASusheel Gupta]

Tax Audit limit is ₹ 1Crore.

For turnover up ₹ 2 crore, declare profit 6%/8% and no need for tax audit.

If turnover exceeds ₹ 2 Crore, pay tax on actual profit but only if condition of 95% of payment and collection is met and no need for tax audit.

CA Susheel Gupta