Audit Limit for FY 19-20

CA Rashmi Gandhi (banswara)     21 January 2021

 The threshold limit of Rs 1 crore for a tax audit is proposed to be increased to Rs 5 crore with effect from AY 2020-21 (FY 2019-20) if the taxpayer’s cash receipts are limited to 5% of the gross receipts or turnover, and if the taxpayer’s cash payments are limited to 5% of the aggregate payments.

Now if you your cash receipts and payments is less than 5% of overall transaction, then you are not liable to get your books of accounts audited.

Liable to deduct TDS arises if your turnover exceeds RS.1 crore in last financial year