The Quicko Table for tax audit is wrong
if some one incurred losses in f&o and total income more than 2.5 L it is not required to get audited if he has not opted fot PTS in last five years.
the total table is misguiding people only… and there is two times >5%
Hi @tapas_panda
Yes, a tax audit will not be applicable if you have not opted out of PTS in the previous 5 Financial years and turnover is less than 10 crore.
We, at Quicko follow the conservative approach where we have observed multiple customers receiving IT Notices for not getting books of accounts audited even though not opted out of PTS scheme and turnover is less than 10 crore.
Quicko is an online tax filing platform and is not involved in tax audits in any manner.
Hi,
I am doing FnO trading from FY 2020-21, fy 2021-22 and losses in both years and among these both years my other income was less than 2.5Lacsperannum but now from this FY 2022-23 if I started again and now my other income is greater than 2.5 lacs per annum & turnover less than 25Lacs is Tax audit applicable to me? I never opted for Presumptive taxation scheme in any of these years ?Thank you. Please reply.
Is tax audit only required for Intraday trading? Or is it also required for delivery based trading?
Intraday turnover around 2,40,000
Intraday profit around 1,80,000
Short term trades turnover around 3 Crs.
Short term trades profit around 8,50,000
Do I require audit?
Hi @Mayureshm
As per your stated situation, tax audit is not mandatory.
You can read more about it here:
Hi @knight
Tax audit is applicable to the Business & Profession income, not required for capital gains.
Incase of Business & Profession Income, Tax Audit is applicable u/s 44AB, if Profits < 6% of turnover, which doesn’t seem in your case.
You can read more about it here:
Hope this helps.
I filed my income return (ITR-3) for AY 22-23 on 30th July 2022. However, I have received multiple emails from the IT department this month (September) to ask CA to submit my Tax Audit Report.
In the past I had asked CA to submit tax-audit reports (under section 44AB). This year, I learnt that a tax audit is not applicable if turnover is below 10 Cr and cash transactions do not exceed 5 percent of the total payment/receipts. In AY-22-23, my turnover is 5.81 Cr and 100 percent transactions are cashless/digital. However, as I was not aware of the new rule, I opted for tax-audit in AY 21-22 ( in AY 21-22, my turnover was Rs 5.55 Cr and 100 percent transactions were cashless/digital.). I had never availed Computation of Presumptive Business Income Under Section 44AD in the past.
Given the above context, I have following queries:
a) Is tax-audit applicable in my case for AY22-23. Does the fact that I opted for tax-audit in AY-21-22 (despite having 100% digital transactions and turnover being less than 10 Cr) will have any effect on tax-audit applicability this year
b) If I opt for tax-audit, do I also need to revise my return which has been already filed ?
Request you to kindly clarify on the same.
Thanks
If you have got an email as shown in the screenshot below, then it is an email campaign from the Income tax department for general awareness about Audit reports. You can ignore this email as NO ACTION is required for the same.
Here are answers to your questions:
a) When turnover is between INR 2Cr and INR 10Cr, neither Section 44AB (or any of its subsections) nor Section 44AD (presumptive taxation scheme) is applicable. Therefore, Tax Audit is not applicable irrespective of profit or loss. (considering all the 100 percent transactions were cashless/digital)
b) Only if you opt for a tax audit, then you are required to submit a revised return.
The last day to file a return for an individual to who whom the audit is applicable is 30 Sept 2022.
Thanks for your response. Does the fact that I mistakenly opted for audit last year (despite having turnover less than 10 Cr and 100 % digital transactions) has any consequences for this year’s tax audit applicability.
Also, is there any penalty if tax audit was unnecessarily/ignorantly submitted under section 44AB.
If you had mistakenly opted for an audit last year, it shall have no consequences for this year’s tax audit.
And there is no penalty if a tax audit was wrongly submitted.
There shall be consequences for non-filing/delay of the same.
Hey thanks for valuable reply, I went through article but I didn’t understand but if I haven’t opted for presumptive taxation scheme in any of the past five years and this financial year my other income exceeds 2.5lac per annum, audit is not mandatory? what is the turnover limit? Thanks!
Hey @Mayureshm
As per your stated situation. Tax Audit is applicable u/s 44AB if the Turnover > 10Cr.
Here’s an tax audit applicability calculator that you might find useful.
Hope this helps.
Hey Extremely thankful for providing valuable Information!
Hi there,
I have received Professional income (Sec 194J receipts) for an amount less than 50 lakhs (around 42 lakhs) and profit earned is more than 50%
And also I have a pharmacy biz. turnover of which is around 85lakhs and profit earned is less than 8%.
Then whether tax audit will be applicable.
Also, will it create difference if I had opted for 44AD in past?
Hello @Harsh,
If you treat the pharmacy business and professional service as two separate businesses then it would not create any difference for the professional service even if you have opted for Section 44AD in the past. However, it can affect your business income. Only having a profit of less than 8% of turnover would not help in determining if a tax audit is applicable or not. If you opt for Tax Audit of pharmacy business then also you can opt presumptive scheme of taxation for the professional income
Here is a read for audit applicability: Tax Audit under Section 44AB of Income Tax Act - Learn by Quicko
Hope this helps!
it person source of income deatiles mentioned below in .fy. 21-22
sec 194j income rs:45 lacs
sale of medicines for pharmacy business rs:85 lacs
rental income from commerical property rs:2,40,000/-
Query:
Assessee tax audit applicable or normal itr filed in .f.y.21-22
The tax audit criterion is different for businesses & professions.
Here’s a read on Tax Audit under Section 44AB of Income Tax Act - Learn by Quicko for your reference.
I am filing my mom’s belated ITR return and I have done intraday trading, short term trading and commodity futures too in her trading account. My F&O turnover is more than 1cr (but under 2cr) and I have incurred losses in futures and profit in intraday and short term.
So do I need to get an audit done or not and is maintaining books of accounts mandatory, do I need to make a balance sheet ? Which ITR form do I need to file?
Also if I am not mistaken then futures MTM can be taken as futures turnover as futures turnover is the absolute sum of profit & losses
Thanks,
Please respond at the earliest as the due date for filing belated ITR is very close.
