Is audit required if FNO turnover is less than 2 cr?

Taxation
1

Hi @Quicko,

Can you pls confirm whether tax audit is needed if i am having turnover of less than 2 cr and having a income below 6% and total income exceeds 2.5 lacs?

Thanks

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2

Hi @sachindei65

Based on the information provided, an audit is applicable in such a case.

Refer this article for Tax Audit Applicability : Help Center

3

@Quicko presumptive scheme has not opted by me till date, also audit is applicable?

1 Like
5

First video is only showing the calculation of turnover, not relevant for my question as i already know my turnover

7

Hi @sachindei65

If your FnO turnover is less than 10 crore, and you have a loss, a tax audit is not applicable provided that the cash receipts or cash payments are less than 5% of the gross receipts or cash payments and the presumptive scheme is not opted out of.

8

Audit will be applicable

9

Okay ! would that condition which @Quicko is refering that only in case of opted out of presumptive, audit will apply otherwise for turnover below 10 cr audit is not applicable.

10

Yes audit not applicable in this case provided that the cash receipts or cash payments are less than 5% of the gross receipts or cash payments

11

For better understanding im raising below questions.

  1. I have turnover less than 1cr
  2. profit less than 6%
  3. i get salary more than basic exemption
  4. All my transactions arerelated to stock market. Meaning FnO, equity nothing else ( so does this mean my cash receipts is 0%? )

So now i dont want to go with Tax Audit (because CA is asking 20k) and i dont know what the hell is presumptive tax scheme is so kindly letme know what are the possibilities

12

U will have to go for audit no other option.But fees charged in case of your turnover is high…consider bargaining for reducing the fees as generally fees is based on turnover or else u can find another alternative.

13

@Gaurav_Tewari Hi, but here you said audit not applicable, as my case is also same as for FNo its always 100% digital.

15

He hasn’t mentioned about presumptive scheme whether in earlier years he has opted in or not and he doesn’t have that information …considering the face value of details given audit is required.

16

“Once you choose the presumptive tax scheme as per section 44AD(1), you are obligated to remain within the scheme for the next five years. If the you wish to discontinue the scheme and declare income or losses lower than the presumptive rate in the current year, then tax audit is mandatory under section 44AB(e).”-Hope this clears the query