Applicability of 5 Crore Audit Limit

Sourav (Student)     12 April 2021

Under section 44AD, presumptive taxation turnover limit is 2 crores rupees

Shivaksh Somani (Student CA IPC / IPCC)     12 April 2021

If we restrict our payments and receipts to 5% then also limit is 2 crore or it is 5 crore?

Sourav (Student)     12 April 2021

Under section 44AD, if you show Profit less than 8% of turnover then tax audit is mandatory otherwise if you show profit above 8% of turnover then tax audit is not applicable irrespective of 5% payment and receipts. As, for entites not opting for presumptive taxation under section 44AD for them 5% cash payments and receipts are applicable.

Shivaksh Somani (Student CA IPC / IPCC)     12 April 2021

If i show profit above 6%/8% and turnover is above 2 crore then also audit applicable?

Ankit Neema   12 April 2021

Yes , audit is applicable