Clarification on Tax Audit requirement for the persons whose turnover does not exceed 10 Crore
Every person carrying on business, whose turnover does not exceed Rs. 10 Crore, is not required to get their books of accounts audited subject to following conditions:
a. Aggregate of all amount received including amount received for sales, turnover or gross receipts during the previous year, in cash, does not exceed 5% of all receipt.
b. Aggregate of all payments made including amount incurred for expenditure, in cash, during the previous year does not exceed 5% of the all payments.
If any payment or receipt, as the case may be, by a cheque drawn on a bank or by a bank draft, which is not account payee, shall be treated as payment or receipt in cash.
An eligible assessee (Individual, HUF or Partnership Firm – resident), whose Turnover does not exceed Rs. 2 Crore may declare profit at least 8% (in case of business through cash) or 6% (in case of business through other than cash).
Section 44AD is not applicable to
b. Persons earning income in the nature of commission or brokerage
c. Person carrying on any agency business
d. Person carrying on business of plying, hiring or leasing goods carriages referred in section 44AE.
Due date to file return of Income (in case of other than tax audit): 31/12/2021
Due date of Tax Audit: 15/01/2022
Due date to file return of Income (in case of Tax Audit): 15/02/2022