Tax Audits under Income Tax act
As per Section 44AB of the Income Tax Act, 1961, certain persons carrying on business or profession have to get their books of accounts audited by a practicing Chartered Accountant.
In case of business, if the total sales, turnover or gross receipts, as the case may be, exceed or exceeds 1 Crore Rupees in any previous year and
In case of profession, if the gross receipts in profession exceed Rs.50 lakh Rupees in any previous year are compulsorily required to get their books of accounts audited by a Chartered Accountant.
Applicability
| Basis | Activity | Limit | Nature of Assessee | ||
|---|---|---|---|---|---|
| Resident Individual/Firm/HUF | |||||
| Total Income up to basic exemption limit | Total Income up to basic exemption limit | Other | |||
| Turnover | Business | 1 crore | Yes | Yes | Yes |
| Gross Receipts | Profession | 50 Lakhs | Yes | Yes | Yes |
| Income/Gain | Business 44AE/BB/BBB | Lower than specified limit | Yes | Yes | No |
| Income/Gain | Business 44AD | Lower than 8%/6% | No | Yes | No |