Compulsory audit of accounts [44AB]

(1) Every person carrying shall, if his total sales, turnover or gross receipts, as the case may be, in business exceeds Rs, 1 crore in any previous year, get his accounts of such previous year audited by a Chartered Accountant before the specified date and furnished by that date the report of such audit in the prescribed form, duly signed and verified, by such setting forth such particulars as may be prescribed.

Specified date shall be as under :

(a) Where the assessee has under taken any international transaction as per section 92B or specified domestic transaction as per section 92BA30th Novemeber of the relevant assessment year
(b) In any other case30th September of the relevan tassessment year

(2) In the case of person carrying on profession, the provision for compulsory audit are applicable if his gross receipt in profession exceed Rs. 25,00,000 in any previous year.

(3) In case of a person who is carrying on the business and covered under section 44AE, 44BB or 44BBB and claims that his income from the said business is lower than the deemed profit and gains computed under the above relevant sections, ha shall have to get his accounts of such previous year audited by a Chartered Accountant on or before the specified date.

(4) Where a person who is carrying on a business referred to in section 44AD and claims that :

      (i) income from such business is lower than 8% of the turnover; and

     (ii) his income exceeds the maximum amount which is not chargeable to income tax in any previous year

he shall get his accounts of such previous year audited by a Chartered Accountant

Leave a Reply