Compulsory audit of accounts (Section 44AB)

Compulsory audit of accounts (Section 44AB)

According to Income Tax  Act 1961 compulsory audit of account  need in case of annual turnover exceed Rs. 1 crore in any previous year ,the tax audit conducted by a Chartered Accountant. Tax Audit mean comprehensive audit of books accounts.

Who need to tax audit?

  1. In case of annual turnover exceed Rs. 1 Crore in any previous year
  2. In case of a person carrying on profession the gross receipts is exceed Rs.50,00,000 during the previous year.
  3. Where a assesse who is carrying on a procession under section 44ADA and the income from such profession is lower than 50% of gross receipts  and income also exceeds the maximum amount which is not chargeable to income tax.
  4. If a person covered under presumptive tax scheme  section 44AD and his annual turnover does not exceed Rs. 2 Crore
  5. Where a person covered under section 44AE, 44BB,44BBB and who want to claims lower than the deemed profit and gains.

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