Chemists Required to File Tax Audit
Whether an income as a chemists required to file tax audit report depends on the following factors:
1. The chemist’s turnover
2. The chemist’s cash receipts and payments
3. The nature of the chemist’s business
4. The complexity of the chemist’s financial transactions
5. The risk of tax evasion
If the chemist’s turnover is more than Rs. 10 crore (or Rs. 5 crore, if the cash receipts and payments exceed 5% of the total receipts and payments), then the chemist is required to get their accounts audited, regardless of the nature of their business or the complexity of their financial transactions.
However, if the chemist’s turnover is less than Rs. 10 crore (or Rs. 5 crore), then the chemist may still be required to get their accounts audited if the nature of their business or the complexity of their financial transactions warrants it.
For example, a chemist who deals in controlled substances or who has a large number of cash transactions may be required to get their accounts audited even if their turnover is less than Rs. 10 crore.
Ultimately, the decision of whether or not to get an income as a chemist’s accounts audited is made by the Income Tax Department.
If the Income Tax Department believes that there is a risk of tax evasion, then they may require the chemist to get their accounts audited, even if the chemist’s turnover is less than the threshold limits.
For further details access our website: https://vibrantfinserv.com
To visit: https://www.mca.gov.in/
Professional Income
