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Question ID : 44557

Tax audit ceiling limit clarification

"The audits conducted under section 44AD, 44AE and 44AF of the Income-tax Act, 1961 shall NOT be taken into account for the purpose of reckoning the "specified number of tax audit assignments". FOR THIS PURPOSE WHAT IS THE TURNOVER LIMIT FOR TAKEN AUDIT U/S 44AD upto 2 CRORE OR 1 CRORE ? For example Last yr turnover 80lac opt for 44AD but current year turnover 1.6cr opt out 44AD and net income exceed minimum amount chargeble to tax. Please clarify that under which section audit will be done 44AB(a) or (e) for current year and it will counted under our Audit limit of 60?

Posted by MD AZHAR on Oct 01, 2023

Filed Under AUDIT

Answer ID : 85184

To audit per 44 AB (a) since opted out from 44AD and as a consequence 44AD(4) is attracted and 44AD((5) is applicable.

Posted by B.CHACKRAPANI WARRIER on Oct 13, 2023
Answer ID : 85308

If one is carrying on a business, he/she not required to get his/her accounts audited by an accountant (and file a tax audit report) if total sales, turnover, or gross receipts do not exceed ?10 crore and cash payments during the year do not exceed 5% of total receipts/payments. that is under Section 44AB (a)

Posted by Hari Beldona on Feb 05, 2024