CS Professional · Advanced Direct Tax Laws and Practice · Tax Audit
Under the Income-tax Act, 2025, for a business assessee satisfying the cash-transaction conditions (cash receipts and cash payments each not exceeding 5%), a tax audit is triggered when total sales, turnover or gross receipts exceed which amount?
The threshold is Rs 10 crore. Where cash receipts and cash payments each do not exceed 5% of total receipts and total payments respectively, the business limit of one crore rupees is replaced by ten crore rupees. Rs 1 crore applies otherwise, and Rs 50 lakh applies to professions.
- ARs 1 crore
- BRs 5 crore
- CRs 10 croreCorrect
- DRs 50 lakh
Explanation
Section 63(1) Table clause (b) substitutes ten crore rupees for one crore rupees where cash receipts and cash payments each do not exceed 5% of the respective totals. Rs 1 crore applies to others, and Rs 50 lakh is the profession limit.
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