Tax Audit Threshold Limit (S.44AB) & Presumptive Taxation (S.44AD): CBDT Clarification

CBDT Clarification on Threshold Limit for Tax Audit (S. 44AB) of Assessees under Presumptive Taxation Scheme (S. 44AD)

Section 44AB of the Income-tax Act makes it obligatory for every person carrying on business to get his accounts of any previous year audited if his total sales, turnover or gross receipts exceed one crore rupees. However, the CBDT has clarified that if an eligible person opts for presumptive taxation scheme as per section 44AD(1) of the Act, he shall not be required to get his accounts audited if the total turnover or gross receipts of the relevant previous year does not exceed two crore rupees. The higher threshold for non-audit of accounts has been given only to assessees opting for presumptive taxation scheme under section 44AD.

CBDT Press Release dt 20th June 2016

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