CS Professional · Advanced Direct Tax Laws and Practice · Tax Audit
Ms. Rao, a consultant, has gross professional receipts of Rs. 45 lakh in the tax year and declares profit under no presumptive scheme. Another year, her receipts are Rs. 60 lakh. Under section 63 of the Income-tax Act, 2025, what is the position?
Audit is required only in the year with Rs. 60 lakh receipts. For professions, section 63 requires audit when gross receipts exceed Rs. 50 lakh, so Rs. 45 lakh does not trigger it, and the Rs. 10 crore enhancement is for business only.
- AAudit is required in both years
- BAudit is required in neither year
- CAudit is required in the first year only
- DAudit is required in the second year onlyCorrect
Explanation
For a profession, the limit is gross receipts exceeding Rs. 50 lakh. Rs. 45 lakh does not exceed it; Rs. 60 lakh does. The Rs. 10 crore enhancement applies only to business.
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