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Income tax audit

Vijay Baraiya (Advocate) (271 Points)

29 May 2019

Income tax audit who is person compulsory ???

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 29 May 2019

as per sec 44AB tax audit applicable to all the tax payers who's turn over exceeding 1cr.

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Manas Mahajan (2 Points)
Replied 29 May 2019

whose income above 2 crores to need audited their account..

Vijay Baraiya (Advocate) (271 Points)
Replied 29 May 2019

aur partnership hai to

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 29 May 2019

@ Manas Mahajan.,

Where is the provisions...?!

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 29 May 2019

The following persons are required to perform tax audit with the assistance of a chartered accountant:

Any person pursuing business and whose total turnover or gross receipts exceed a sum of 2 crore rupees in any previous year (N.A applicable to the persons who opts for presumptive taxation scheme).

Any person pursuing profession and whose gross profits exceed fifty lakh rupees in any previous year.

A person who is considered eligible for the presumptive taxation scheme, and who claims that the profits and gains for the respective business is lower than what is computed in accordance with the presumptive taxation scheme and his/her income exceeds the amount that is taxable. This provision is applicable to the taxpayers who opt for presumptive taxation scheme other than the one who choose the scheme under Section 44AD and whose sale or turnover is limited to Rs 2 crores.

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Vijay Baraiya (Advocate) (271 Points)
Replied 30 May 2019

partnership firm hai to use compulsory hai ?

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 30 May 2019

Compulsory for partnership also.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 30 May 2019

Not compulsory if turn over not exceeding 1cr...

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Kamal Verma (Financial advisor) (582 Points)
Replied 30 May 2019

As per section 44AB, following persons are compulsorily required to get their accounts audited :

• A person carrying on business, if his total sales, turnover or gross receipts (as the case may be) in business for the year exceed or exceeds Rs. 1 crore. This provision is not applicable to the person, who opts for presumptive taxation scheme under section 44AD and his total sales or turnover doesnot excceeds Rs. 2 crores.

• A person carrying on profession, if his gross receipts in profession for the year exceed Rs. 50 lakhs.

• A person who is eligible to opt for the presumptive taxation scheme of section 44AD (*) but claims the profits or gains for such business to be lower than the profits and gains computed as per the presumptive taxation scheme of section 44AD and his income exceeds the amount which is not chargeable to tax.

• If an eligible assessee opts out of the presumptive taxation scheme, after specified period, he cannot choose to revert back to the presumptive taxation scheme for a period of five assessment years thereafter.

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