CA Final · Direct Tax Laws & International Taxation · Tax Audit and Ethical Compliances
Dr. Anita Rao, a consultant, had gross receipts of Rs. 45 lakh in the tax year from her profession. She has no presumptive-scheme claim. Which statement is correct under section 63?
Audit is not required. For a person carrying on profession, section 63 requires audit only when gross receipts exceed Rs. 50 lakh, and Rs. 45 lakh is below that limit. The cash-based enhanced limit applies to business only.
- AAudit is required as receipts exceed Rs. 10 lakh
- BAudit is not required because receipts do not exceed Rs. 50 lakhCorrect
- CAudit is required because the Rs. 1 crore limit applies to professions
- DAudit is not required only if she opts for the 5% cash limits
Explanation
For a profession, audit applies if gross receipts exceed Rs. 50 lakh. Rs. 45 lakh is below it. The higher Rs. 10 crore limit relates to business, not profession.
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