Who Is Covered Under Tax Audit


According to section 44AB of the Income Tax Act, following are mandatorily required to get their accounts audited:
·         An individual engaged in business with Rs.1 crore and above as the annual turnover of business.
·         An individual engaged in any sort of profession with income receipts in a year aggregated to be Rs.50 lakhs and above.
·         An individual who, under Section 44AD, qualifies for the presumptive taxation scheme but at a later stage claims that the profits for the business are lower than the profits calculated earlier as per the presumptive taxation scheme. It is also applicable in case, the income on record is calculated to be more than the amount which is not chargeable for taxation or is tax-free.
·         If the assessee qualified under the presumptive taxation scheme, after a specific period opts out of it, will lose the ability to go back to the said taxation scheme for a continuous period of 5 assessment years after opting out.
·         An individual who qualifies to choose the presumptive taxation scheme of selection under Section 44AE but then claims that the profits for such business are lower than the profits calculated in accordance with the presumptive taxation scheme of section 44AE.
·         An individual who qualifies to choose the presumptive taxation scheme of selection under Section 44BBB but then claims that the profits for such business are lower than the profits calculated in accordance with the presumptive taxation scheme of section 44BBB.
You can submit your tax audit report easily with the help of Enterslice.

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