Clerk Information Center
Clerk Information Center
There are certain things that matter to us, that we stand for, and that define virtually every decision that we make at Clerk.
In 2016, we laid them out in our 3 Laws of Data Protection:
Clerk can help you for
Tax audit
Updated on Sep 06, 2019 – 01:12:46 PM
It is also referred to a systematic review or assessment of Tax Liability and corresponding Income and Expenses or Receipts and Payments.
There are various kinds of audit being conducted under different laws such as company audit/ Statutory Audit conducted under company law provisions, cost audit, stock audit etc.
Similarly, income tax law also mandates an audit called ‘Tax Audit’. As the name itself suggests, tax audit is an examination or review of accounts of any business or profession carried out by taxpayers from an income tax viewpoint. It makes the process of income computation for filing of return of income easier.
Category of person
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Threshold
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Carrying on business (not opting for presumptive taxation scheme*)
In case of loss from carrying on of business and not opting for presumptive taxation scheme
Taxpayer’s income exceeding basic threshold limit but taxpayer incurs loss from carrying on business (not opting for presumptive taxation scheme)
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Total sales, turnover or gross receipts exceed Rs 1 crore
Total sales, turnover or gross receipts exceed Rs 1 crore
Even in case of loss from business when sales, turnover or gross receipts exceed 1 crore, taxpayer is subject to audit
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Carrying on business (opting presumptive taxation scheme under Section 44AD
Carrying on business (presumptive taxation scheme under section 44AD applicable) and having a business loss but with income exceeding basic threshold limit
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Declares taxable income below the limits prescribed under the presumptive tax scheme and has income exceeding the basic threshold limit
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Carrying on business (opting presumptive taxation scheme under section 44AD and having a business loss but with income below basic threshold limit
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Tax audit not applicable
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Carrying on profession
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Gross receipts exceed Rs 50 lakhs
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Carrying on business eligible for presumptive taxation under Section 44AE
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Claims profits or gains lower than the prescribed limit under presumptive taxation scheme
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Carrying on the profession eligible for presumptive taxation under Section 44ADA
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Claims profits or gains lower than the prescribed limit under presumptive taxation scheme and income exceeds maximum amount not chargeable to tax
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Carrying on the business and is not eligible to claim presumptive taxation under Section 44AD due to opting for presumptive taxation in one tax year and not opting for presumptive tax for any of the subsequent 5 consecutive years
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If income exceeds maximum amount not chargeable to tax in the subsequent 5 consecutive tax years from the tax year where presumptive taxation is not opted for
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In such cases, the taxpayer need not get his accounts audited again for income tax purposes. It is sufficient if accounts are audited under such other law before the due date of filing the return. The taxpayer can furnish this prescribed audit report under Income tax law.
Clerk can help you file a trademark in less than 12 hours.
Got Questions? Request a call from Clerk Business Advisor.
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