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?
- In case of annual turnover exceed Rs. 1 Crore in any previous year
- In case of a person carrying on profession the gross receipts is exceed Rs.50,00,000 during the previous year.
- 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.
- If a person covered under presumptive tax scheme section 44AD and his annual turnover does not exceed Rs. 2 Crore
- Where a person covered under section 44AE, 44BB,44BBB and who want to claims lower than the deemed profit and gains.