TaxTMI 
TaxTMI 
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?
THRESHOLD LIMIT FOR 44AB TAX AUDIT FOR FY 2019-20
16 Jan 2021 
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Tax audit threshold debate: differing views on turnover limits, presumptive profit rates and digital payment condition.
Practitioner responses conflicted on the section 44AB audit threshold for FY 2019-20: one asserted a higher turnover limit and set presumptive profit percentages for non-digital and digital transactions; another maintained a lower audit threshold, explained that presumptive profit rates apply up to an intermediate turnover band without requiring audit, and that above that band taxpayers must be taxed on actual profit only if the condition concerning the proportion of payments and collections is satisfied. (AI Summary)
Practitioner responses conflicted on the section 44AB audit threshold for FY 2019-20: one asserted a higher turnover limit and set presumptive profit percentages for non-digital and digital transactions; another maintained a lower audit threshold, explained that presumptive profit rates apply up to an intermediate turnover band without requiring audit, and that above that band taxpayers must be taxed on actual profit only if the condition concerning the proportion of payments and collections is satisfied. (AI Summary)