14 December 2011
If a person is carrying on business(es), coming within the scope of sections 44AD, 44AE, 44AF, 44BB or 44BBB but he exercises his option given under these sections to get his accounts audited under section 44AB, tax audit requirements would apply, in respect of such business(es) even if the turnover of such business(es) does not exceed Rs.40 lakhs. In the case of a person carrying on businesses covered by sections 44AD, 44AE, 44AF, 44BB or 44BBB and opting for presumptive taxation, tax audit requirement would not apply in respect of such businesses. If such person is carrying on other business(es) not covered by presumptive taxation, tax audit requirements would apply in respect thereof, if the turnover of such business(es), other than the business(es) covered by presumptive taxation thereof, exceed Rs.40 lakhs. FOR FURTHER REFERENCE YOU SHOULD REFER-Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961
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