| Question And Answer | |
|---|---|
| Subject: | APPLICABILITY OF TAX AUDIT |
| Category: | Income-Tax |
| Querist: | r k agarwal |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Tax Audit |
| Date: | July 30, 2022 |
In the financial year 2021-22 assessee did trading business of cloth. His turnover is around Rs.2.50 lacs His expenses and receipts are total in cash.
During the financial year he incurred a loss of Rs.30000/-. He maintains regular book of accounts and never opted Presumtitve Taxation . Is tax audit applicable in this case.
As per section 44AB(a) of the Income-tax Act, 1961. The criterion for tax audit is that the assessee should have a turnover, gross receipts or total sales exceeding Rs. 1 crore.
Since, in this case the assessee’s turnover is Rs. 2.5 lakh, he need not get his books audited.
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