Page Contents
For FY 2020-21
For FY 2021-22
NOTE: With effect from AY 2022-23 (FY 2021-22 ), the Rs 1 crore threshold limit for a tax audit is proposed to be enhanced to Rs 10 crore if the taxpayer’s cash receipts are restricted to 5% of gross receipts or turnover, and if the taxpayer’s cash payments are limited to 5% of the aggregate payments. The many categories are shown below:
Categories | Threshold Limit |
Business carrying On( Not opting for presumptive taxation scheme) | Total Sales, Turnover, Gross revenue not more than Rs, 100,00,000 in the Financial Year. |
in case Business carrying On Opting Presumptive Taxation Scheme under section 44AE, 44BB, and 44BBB | Profit or Gain Claimed lower than prescribed limit under presumptive taxation scheme. |
Business carrying on eligible under section-44AD for presumptive taxation | Declares taxable income below the limits prescribed under the presumptive tax scheme and has income exceeding the basic threshold limit. |
If the Business Carrying on and is not eligible to claim presumptive taxation under Section 44AD due to opting out for presumptive taxation in any one financial year of the lock-in period i.e. 5 consecutive years from when opted for presumptive tax scheme | in case income exceeds the maximum amount not chargeable to tax in the subsequent 5 consecutive tax years from the F.Y. when the presumptive taxation was not opted |
Business Carrying on which is declaring profits as per presumptive taxation scheme under Section 44AD | In case income excess of the maximum amount not chargeable to tax in the subsequent 5 consecutive tax years from the financial year when the presumptive taxation was not opted for |
When Business Carrying on which is declaring profits as per presumptive taxation scheme under Section 44AD | If the total sales, turnover or gross receipts does not exceed Rs 2,00,00,000 in the financial year, then tax audit will not apply to such businesses. |
Categorizes | Threshold Limit |
Profession Carrying on | Total gross Revenue exceed of Rs 50,00,000 in the FY |
When Profession Carrying on eligible for presumptive taxation under Section 44ADA | 1. Claims profits/ gains lower than the prescribed limit under the presumptive taxation scheme 2. Income exceeding the maximum amount not chargeable to income tax |
Categories | Threshold Limit |
In case of loss from carrying on of business and not opting for presumptive taxation scheme | Total sales, turnover or gross revenue exceed Rs 1,00,00,000 |
If a taxpayer’s total income exceeds the basic threshold limit but he has incurred a loss from carrying on a business (not opting for a presumptive taxation scheme) | In case of loss from business when sales, turnover or gross receipts exceed 1,00,00,000, the taxpayer is subject to tax audit under 44AB |
business Carrying on (opting presumptive taxation scheme under section 44AD) and having a business loss but with income below the basic threshold limit | Tax audit not applicable |
when Business Carrying on (presumptive taxation scheme under section 44AD applicable) and having a business loss but with income exceeding basic threshold limit | Declares taxable income below the prescribed limits under the presumptive tax scheme and has income exceeding the basic threshold limit |
• It acts as an auditor’s certification for the books of accounts.
• Needed to verify the business person as a taxpayer and demonstrates account maintenance.
• It assists the tax authorities in knowing that the tax laws have been effectively administered by submitting appropriate presentations of accounts.
Non-filing or late submission of a tax audit report might result in penalties.
Popular Articles related to Tax Audit :
All about Financial Forensics & its Applications Financial Forensics and Forensic Audit Techniques Financial forensics and forensic audit techniques are… Read More
Code of Conduct in Forensic Audit: Introduction: A forensic audit is a specialized examination that investigates financial records to uncover… Read More
When is the cancellation revocation applicable? Procedure for Implement Revocation for GST cancellation This applies only if, on its own… Read More
Enhancement Made to the GST Portal - Significant Update Goods and Services Tax Network is pleased to inform that an… Read More
ITC Mismatch GSTR-2B vs GSTR-3B - DRC-01C Intimation under Rule 88D New mechanism to deal with Input Tax Credit mismatches… Read More
Hurdles with Hindu Undivided Family Dissolution: The Hindu Undivided Family (HUF) is a recognized legal entity under the Income-tax Act,… Read More