Is Tax audit compulsory for a private limited company which turnover is 1.07 crore having loss rs. 31 lacs but 100 % receipts and payments is through bank

Reply-Under section 44AB(a) of Income Tax Act, every person carrying on business shall, if his total sales, Turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees in any previous year  get his accounts of such previous year  audited by an accountant before the specified date and furnish by that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed.

w.e.f. Assessment Year 2020-21, the threshold limit is increased from Rs. 1 Crore to Rs. 5 crore in case when cash receipt and payment made during the year does not exceed 5% of total receipt or payment, as the case may be. In other words, more than 95% of the business transactions should be done through banking channels.

So, in your case tax audit is not compulsory.