Esteemed Team @Quicko
What is the point of Tax audit?
If trading turnover exceeds 10 Crore & profit is 4%, would tax audit save one from paying 6% (& enable getting taxed on 4% gains) or would one still need to pay 6% and attach audit reports.
Hey @PPB,
If your trading turnover exceeds ₹10Cr, you are liable to get a tax audit done regardless if you have profits or losses. Moreover, you need to report the accurate profit, which is 4% in your case.
Also, reporting of 6% profits is done under the presumptive taxation scheme, but to opt for the same your turnover should be less than 2Cr.
You can read more on tax audit here: Tax Audit under Section 44AB of Income Tax Act
Hope this clarifies!
Hey @PPB,
I think you are getting confused between the presumptive taxation scheme and tax audit. There’s no relation between the two. You will have to get a tax audit done if your turnover exceeds ₹10Cr. Moreover, you will have to show the same as regular business and not presumptive business. Hence, tax will be payable on actual profits which is 4% in your case.