Who are audited under 44AB?
Who are audited under 44AB?
Section 44AB gives the provisions relating to the class of taxpayers who are required to get their accounts audited by a chartered accountant. The audit under section 44AB aims to ascertain the compliance of various provisions of the Income-tax Law and the fulfillment of other requirements of the Income-tax Law.
What is the applicability of tax audit?
Who is mandatorily subject to tax audit? A taxpayer is required to have a tax audit carried out if the sales, turnover or gross receipts of business exceed Rs 1 crore in the financial year. However, a taxpayer may be required to get their accounts audited in certain other circumstances.
Who is liable for tax audit under Section 44AB?
Under Section 44 AB of Income Tax Act, audit of accounts is compulsory if: Your business’s gross turnover exceeds Rs. 1 crore in any preceding year, or if your profession’s gross receipts are more than Rs. 50 lakh in any preceding year.
Who is applicable for tax audit?
Any business where the total sales, turnover, or receipts exceeds Rs. 1 crore in a year should have a tax audit in India. As a professional, receipts over Rs. 50 lakh makes you eligible for a tax audit.
What is 44AB of income tax?
Audit of accounts of certain persons carrying on business or profession. 44AB . Every person,— (a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees in any previous year 89[***]: 90[Provided that in the case of a person whose—
In which cases is this audit applicable?
Applicability of Tax Audit Tax Audit is necessary if the total sales, turnover or gross receipts exceed one crore rupees. The assessee is carrying on a business and has opted for the presumptive taxation scheme under Sections 44AE, 44BB or 44BBB.
Is 44AB applicable to trust?
29 July 2010 Tax audit u/s 44AB is not applicable for trusts. However, if the income of trust (before claiming deduction u/s 11 & 12) exceeds amount not chargeable to tax for the previous year (i.e Rs. 1.6 lac), the trust should get it accounts audited u/s 12A(1)(b) and audit report should be furnished in Form 10B.
Who comes under 44AB of Income Tax Act?
Section 44AB gives the provisions relating to the class of taxpayers who are required to get their accounts audited from a chartered accountant. The audit under section 44AB aims to ascertain the compliance of various provisions of the Income-tax Law and the fulfillment of other requirements of the Income-tax Law.
Is 44AB applicable to salaried employees?
03 November 2014 tax audit 44AB not applicable of individual is having only salary income.
What is 44AB in income tax?
Audit of accounts of certain persons carrying on business or profession. 44AB. Every person,— (a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees in any previous year 89[***]: 90[Provided that in the case of a person whose—