Tax Audit under section 44AB of Income Tax Act, 1961

Due date of filing Income tax return for assessee who are liable to get their books of accounts audited is 30th September of the Assessment year.

Compulsory Tax Audit for following persons:

1. A Person carrying on business is required to get his books of account compulsorily audited u/s 44AB If the total sales, turnover or gross receipt in business for the previous year relevant to assessment year exceeds Rs. 1 Crore but business whose gross turnover/receipt does not exceeds Rs. 2 Crore are eligible to take benefit of Presumptive Scheme under section 44AD.

2. A person carrying on profession is required to get his books of account compulsorily audited u/s 44AB, if his gross receipt in profession for the previous year relevant to the assessment year exceeds Rs 50 lakh.

3. A person covered u/s 44AE, 44BB or 44BBB is required to get his books of account compulsorily audited u/s 44AB if such person claims that the profits and gains from the business are lower than the profits and gains computed under these sections (irrespective of the turnover).

4. A person covered under Section 44AD is required to get his books of account compulsorily audited u/s 44AB if such person claims that the profits and gains from the business are lower than the profits and gains computed in accordance with the provisions of section 44AD(1) and if his income exceeds the maximum amount which is not changeable to tax (i.e. basic exemption limit).

However if the total turnover exceeds Rs 2 crore in any previous year, in case of the assessee declaring income u/s 44AD ,the assessee is required to get his accounts Audited U/s 44AB.

5. A person covered under Section 44ADA is required to get his books of account compulsorily audited u/s 44AB if such person claims that the profits and gains from the Profession are lower than the profits and gains computed in accordance with the provisions of section 44ADA(1) and if his income exceeds the maximum amount which is not changeable to tax (i.e. basic exemption limit).Tax Audit Limit for Professionals Increased to 50 Lakh.