What is the threshold limit for tax audit for a business with a turnover in Indi
Practice Questions
Q1
What is the threshold limit for tax audit for a business with a turnover in India?
1 crore
2 crores
5 crores
10 crores
Questions & Step-by-Step Solutions
What is the threshold limit for tax audit for a business with a turnover in India?
Step 1: Understand what a tax audit is. A tax audit is an examination of a business's financial records by tax authorities to ensure accuracy in tax reporting.
Step 2: Know the term 'turnover'. Turnover refers to the total sales or revenue generated by a business in a financial year.
Step 3: Identify the threshold limit for tax audit in India. This is the amount of turnover that, if exceeded, requires a business to undergo a tax audit.
Step 4: Learn that the current threshold limit for tax audit for a business in India is 1 crore (10 million rupees).
Step 5: Conclude that if a business has a turnover of more than 1 crore, it must have a tax audit.
