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Limit of Turnover or Gross Receipts for Purpose of Audit of Accounts and for Presumptive Taxation
Limit of turnover or Gross Receipts for the purpose of audit of accounts and for presumptive taxation
- Under the existing provisions of section 44AB, every person carrying on business is required to get his accounts audited if the total sales, turnover or gross receipts in business exceed 40 lac rupees in the previous year.
- Similarly, a person carrying on a profession is required to get his accounts audited if the gross receipts in profession exceed 10lac rupees in the previous year.
- In order to reduce compliance burden of small business and professionals, it is proposed to increase the aforesaid threshold limit from 40lac rupees to 60lac rupees in the case of persons carrying on business and from 10lac rupees to 15lac rupees in the case of persons carrying on profession.
- In view of the amendment proposed above, it is also proposed to increase the maximum penalty, leviable under section 271B for failure to get accounts audited under section 44AB or to furnish a report of such audit, from one lac rupees to one lac fifty thousand rupees.
- It is also proposed that for the purpose of presumptive taxation under section 44AD, the threshold limit of total turnover or gross receipts would be increased from forty lac rupees to 60lac rupees.
- These amendments are proposed to take effect from 1st April 2011 and will, accordingly, apply in relation to the assessment year 2011-12 and subsequent years.
- The due date of 31st July for individual who are not subject to an audit applies irrespective of whether the individual has salary, business or interest income.
- So, if your taxable income exceeds Rs1,60,000 you will have to file a return.