Tax audits have long raised worries, especially among traders and investors. During a tax audit, a professional Chartered Accountant looks over and evaluates a taxpayer's books of accounts and records the pertinent data in the Tax Audit Report. The auditor then delivers the Tax Audit Report to the Income Tax Department. This article includes details on the Tax Audit Return Filing for Traders and the Tax Audit Applicability for Traders.
Tax Audit Applicability for Traders Criteria
Five Crores Threshold Limit: The required tax audit turnover limit is INR 5 Crores if an individual's gross receipts and payments in cash do not exceed 5% of all receipts and payments.
Section 44 AD: It is applicable when a person's taxable income, other than trading losses, exceeds the taxation slab and the tax audit turnover is less than INR 2 crore, the profit is less than 6 percent, and the total income exceeds the starting exemption.
Section 44AB: Taxpayers must report any income they get from stock F&O (Futures and Options
