Income Tax Audit for Businesses & Professionals @ RS. 4999Get this deal now
Any person carrying on a business must get accounting records audited if turnover exceeds Rs 1 crore. [As per section 44AB of the income tax act]. Read in detail about audit and accounting rules for businesses here. With the change in turnover limit for presumptive income, there has been some confusion about applicability of audit for businesses and professions.
Audit for Businesses
Starting financial year FY 2016-17 (income tax return filing for AY 2017-18), the turnover limit for businesses which can opt for presumptive income scheme has been increased from Rs 1 crore to Rs 2 crore.For other businesses who do not opt for presumptive income scheme, audit limit will remain Rs 1 crore.There has been no change in the audit limit for businesses who are not opting for presumptive income scheme.
Audit for Professionals
The tax audit limit for professionals is Rs 50 lakhs from FY 2016-17 onwards.
Starting financial year FY 2016-17 (return filing for AY 2017-18), presumptive income scheme has been extended to professionals with receipts up to Rs 50 lakhs. Under this scheme, their income is assumed to be 50% of receipts. Books of accounts are not required to be maintained and audit is not applicable.