Tax Audit Applicability for A.Y. 2020-21 under Section 44AB vis-à-vis Section 44AD / Section 44ADA of the Income Tax Act, 1961

We have attempted to provide a compendious view of Tax Audit Applicability for A.Y. 2020-21 under Section 44AB vis-à-vis Section 44AD / Section 44ADA of the Income Tax Act, 1961.

Tax Audit Applicability for A.Y. 2020-21 for Business Income (Section 44AB vis-à-vis 44AD of the Income Tax Act, 1961)

turnover

Tax Audit Applicability for A.Y. 2020-21 for Professional Income (Section 44AB vis-à-vis 44ADA of the Income Tax Act, 1961)

Gross Receipts

Disclaimer: This document is meant for the recipient for use as intended and not for circulation. The information contained herein is from the public domain, company published data or sources believed to be reliable. The information published is analyzed by the respective analyst publishing the report. The data contained herein doesn’t represent any view that is intended to influence any decision making by the person reading the content of this report. We do not guarantee the accuracy, adequacy or completeness of any Data in the Report and is not responsible for any errors or omissions or for the results obtained from the use of such Data.

Author Bio

Qualification: CA in Practice
Company: Vasani & Co.
Location: Mumbai, Maharashtra, IN
Member Since: 09 Jun 2020 | Total Posts: 4

My Published Posts

More Under Income Tax

9 Comments

  1. Ramesh Tekwani says:

    Ms. Khayati,

    I am a marketing professional having income of Rs. 7 lakhs from consultancy in FY: 2019-20 and loss from Intraday Trading at stock market. What does turnover mean under this section? Do i have to go for audit? Pls clarify.

  2. somesh jain says:

    TAX AUDIT LIMIT FOR A CA. CONDUCT IS 60. IN THIS LIMIT AUDIT U/S 44AD IS NOT INCLUDED. WHAT IS THE T/O LIMIT U/S 44AD FOR THIS PURPOSE 1 OR 2 CRORES

  3. CHETANKUMAR SHANTIBHAI PANCHAL says:

    As per my view, Requirement of audit (Range 1Cr-2Cr) will not be applicable under Section 44AB(e), because erstwhile requirement of getting books of account audited if profit is below 8%/6% has been removed. So even if it is loss or below, assessee can escape audit.

  4. CA PAWAN AGRAWAL says:

    If turnover less then 5 cr. and CR and CP less then 5%. whether the assessee will opt for 44AD(presumptive) disclosing profit @6% for 95% turn over and 8% for 5% of turnover or is to file unaudited PL and BS showing even less profit. Pl. reply.

    1. khyativasani says:

      Dear Sir,
      Presumptive Income u/s 44AD can be offered only by Individual, HUF and Partnership Firm and that too only when the Turnover is below Rs.2 crores.
      If Turnover is between Rs.2 crores to Rs. 5 crores and Cash Receipts is below 5% of Total Receipts as well as Cash Payments is below 5% of Total Payments, then no Audit is required. If any of the conditions are not fulfilled, then Audit will be applicable.

      1. VEDPAL SHARMA says:

        If Turnover of individual is between Rs.2 crores to Rs. 5 crores and Cash Receipts is below 5% of Total Receipts as well as Cash Payments is below 5% of Total Payments,
        If Profit is 3% of total turnover then Audit under section 44AB is applicable or not ??

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

October 2020
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031