Tuesday, 21 June 2016

Tax Audit applicability clarification by CBDT

Central Board of Direct Taxes
New Delhi, the 20th June, 2016
Sub: Threshold Limit of tax audit under section 44AB and section 44AD – clarification

Section 44AB of the Income-tax Act (the Act) makes it obligatory for
every person carrying on business to get his accounts of any previous year
audited if his total sales, turnover or gross receipts exceed one crore rupees.

However, if an eligible person opts for presumptive taxation scheme as per section 44AD(1) of the Act, he shall not be required to get his accounts audited if the total turnover or gross receipts of the relevant previous year does not exceed two crore rupees. The higher threshold for non-audit of accounts has been given only to assessees opting for presumptive taxation scheme under section 44AD.

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