CA Eresh Dalal
Article contains Matrix for Tax Audit Requirement Under Section 44AB for A.Y.2020-21. Matrix has been prepared after considering provisions of section 44AB and 44AD for A.Y.2020-21
Matrix for Tax Audit Requirement Under Section 44AB for A.Y.2020-21
| Sr. No. | Assesse Status | Turnover | Income Exceeds Basic Exemption limit | Profit above 8% / 6% (assumed that assesse was opting 44AD till A.Y. 2019-20) | Amount received /paid in cash of total receipts / payment exceeds 5% | Required for audit U/s 44AB | Reasons |
| 1 | Individual /UF / Firm | Less Than 1 Corers | Yes | Yes | NA | No
|
Since return filed U/s 44AD |
| 2 | Individual / HUF /Firm | Less Than 1 Corers | Yes | no | NA | Yes
|
Since Opted out of 44AD for the first time and will have to get its account audit for next 5 years as benefit of 44AD will not be available for 5 years
Note : In this case if this is first year of business no audit will be required since assesse never opted for 44AD in preceding Year.
|
| 3 | Individual / HUF / Firm | Less Than 1 Corers | No | Yes/No | NA | No
|
Since Income is below taxable Limit and turnover is also less than Rs.1 corers. |
| 4 | Individual / HUF / Firm | More than 1 Corers and upto 2 Corers | Yes | Yes | Yes | No | Provisions of section 44AB does not apply to persons opting for 44AD even though cash receipt / payment exceeds 5% of total total receipts or payment( Proviso 1 to section 44AB) |
| 5 | Individual / HUF / Firm | More than 1 Corers and upto 2 Corers | Yes | No | No/Yes | Yes | Since Opted out of 44AD for the first time and will have to get its account audit for next 5 years as benefit of 44AD not available for 5 years
|
| 6 | Individual / HUF / Firm | More than 1 Corers and upto 2 Corers | Yes | yes | No | No | As per provision of 44AD |
| 7 | Individual / HUF / Firm | More than 1 Corers and upto 2 Corers | No | Yes | yes | No | Since Income is below taxable limit and provision of 44AB does not apply to person opting for 44AD |
| 8 | Individual / HUF / Firm | More than 1 Corers and upto 2 Corers | No | No | Yes | yes | Though Income is below taxable limit as assesses has opted out of 44AD and normal provision of 44AB applicable.
Since cash receipt / payment is more than 5% of aggregate receipt and payment and turnover is less than 5 corers. |
| 8 | Individual / HUF / Firm | More than 2 corers and upto 5 corers | NA | NA | No | No | Since cash receipt / payment is less than 5% of aggregate receipt and payment and turnover is less than 5 corers. |
| 9 | Individual / HUF / Firm | More than 2 corers and upto 5 corers | NA | NA | Yes | Yes | Since cash receipt / Payments is more than 5% of aggregate receipt and payment and turnover is more than 1 Corers and less than 5 corers |
| 10 | Company/ LLP | More than 1 corers and upto 5 corers | NA | NA | Yes | Yes | Since cash receipt / Payments is more than 5% of aggregate receipt and Payments and turnover is more than 1 Corers |
| 11 | Company / LLP
|
More than 1 corers and upto 5 corers | NA | NA | No | No | Since cash receipt / Payments is less than 5% of aggregate receipt and Payments and turnover is less than 5 corers. |
| 12 | All assesse | More than 5 Corers | NA | NA | NA | yes | Since Turnover exceeds Rs. 5 corers |
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Sir
Would like to know if I have total income ( contains income from salary and Other sources) exceeding Basic Exemption Limit and have Loss from Intra-day trade of shares.
I have shown the Rs. 25000/- Turnover of Intra-day( as per rules) under speculative business and have claimed loss of Rs. 4250.
Whether I require to get my books tax audited for showing loss under Intra-day trade.
Please guide.
Too good a matrix of ready reference covering company assessees as well which often gets skipped in the discussions. Brilliant simplification.