Income Tax Audit Applicability & Application in India
Income Tax Audit Applicability & Application in India
Nature of Business or Profession | When audit is Mandatory? |
Business loss |
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In case of loss from carrying on of business and not opting for presumptive taxation scheme | Total sales, turnover or gross receipts exceed Rs 1 Crore |
If taxpayer’s total income exceeds basic threshold limit but he has incurred a loss from carrying on a business (not opting for presumptive taxation scheme) | In case of loss from business when sales, turnover or gross receipts exceed 1 Crore, the taxpayer is subject to tax audit under 44AB |
Carrying on business (opting presumptive taxation scheme under section 44AD) and having a business loss but with income below basic threshold limit | Tax audit not applicable |
Carrying on business (presumptive taxation scheme under section 44AD applicable) and having a business loss but with income exceeding basic threshold limit | Declares taxable income that is less than the limitations set by the presumptive tax scheme but more than the basic threshold limit. |
All about Presumptive Taxation Scheme us 44AD, 44ADA and 44AE
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