Comment on Taxation for Traders - Introduction

Nakul commented on 08 Apr 2019, 01:26 PM

An audit is required if –
1. Turnover for the year crosses the Rs 2 crores. This is in case of digital transactions, and stock market trading is 100% digital. (Otherwise, it is Rs 1 crore). Also, Rs 2 Cr limit for no audit is if you declare under 44AD (read below) only, else Audit is applicable for one crore.
2. Section 44AD – If the turnover is less than Rs 2 crore, and if profit less than 6% of turnover and total income exceeds basic exemption limit (An audit is not required if turnover is less than Rs 2 crores but your total income is within the taxable limit of Rs 2.5lks).

More about turnover and tax audit is explained here.

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