THRESHOLD LIMIT FOR 44AB TAX AUDIT FOR FY 2019-20

[MVK TAXAUDIT]

WHAT IS THE THRESHOLD LIMIT FOR 44AB TAX AUDIT FOR FY 2019-20. WHETHER IT IS 1 CRORE OR 5 CRORE. WHAT IS THE PROFIT PERCENTAGE THAT HAS TO BE DECLARED IF IT IS 5 CRORE?

AI Summary

Debate on Section 44AB Tax Audit Thresholds for FY 2019-20: Turnover Limits and Profit Percentages Explained. A discussion on the threshold limit for the 44AB tax audit for FY 2019-20 reveals differing views. One participant states the turnover threshold is 5 crore, with a profit percentage of 8% for non-digital and 6% for digital transactions. Another participant clarifies that the tax audit limit is 1 crore. For turnover up to 2 crore, a profit declaration of 6% or 8% is required, with no tax audit needed. If turnover exceeds 2 crore, tax is based on actual profit, provided 95% of payments and collections are digital, eliminating the need for a tax audit.