29 Aug

INCOME TAX AUDIT

Question:- Sir I am doing fruit wholesale and my annual sales are Rs.1. 50 crores, do I have to audit?

Answer

  • If your annual sales are more than Rs 1 crore and your net profit is less than 8% then you need to do an income tax audit.
  • If your sales are between 1 crore to 10 crores and your cash sales or cash expenses are more than 5%, then you need a tax audit.

  • If your net profit is more than 8% then no audit is required, if your sales are 1 crore to 10 crore and your cash sales or cash cost is less than 5% then you don't need to do a tax audit

 Example

SALES

NET PROFIT WITHOUT AUDIT 8%

TAX

1.50 CRORES

1,20,0000.00

1,79,400.00

 

 

 

SALES

NET PROFIT WITH AUDIT 4%

TAX

1.50 CRORES

6,00,000.00

33,800.00

 

Regards

Santosh Patil

9769201316


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