When TAX Audit is Applicable?
- Carrying on Business shall and turnover exceeds Rs. 100 Lac in any financial year.
- Carrying on Profession and gross receipts in profession exceed 25 Lac in a financial year.
- Must carry on business or profession.
- Maintenance of books accounts is mandatory as per Income tax act.
- A business or profession should be carried with a motive of profit.
- Profit or gain computable under Chapter IV.
- Income is Taxable or Loss allowable under Act.
Who are required to get their accounts audited?
- Partnership Firm.
- Association of person.
- Local Authority.
- Section -8 company.
- Trust / NGO/ Society.
What is included in turnover for TAX AUDIT?
- Duty drawback received on export sales shall be considered as part of Turnover in a financial year.
- Interest income by money lender.
- Foreign fluctuation income by an exporter shall be considered as part of turnover in a financial year.
- Advance received & forfeited from customers.
- If excise duty included in turnover it should be again debited in the profit and loss account.
What is excluded in turnover for TAX AUDIT?
- Sale/ Purchase of Fixed Assets.
- Sale Proceeds of the Assets Held as Investments.
- Rental Income residential or commercial property.
- Interest income.
- Reimbursement of expenses as receipt.