23 September 2008
[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 forty lakh rupees in any previous year [***]; or (b) carrying on profession shall, if his gross receipts in profession exceed ten lakh rupees in any [previous year; or (c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AD or section 44AE or section 44AF [or section 44BB or section 44BBB], as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any previous year,] [***] get his accounts of such previous year [***] audited by an accountant before the specified date and [furnish by] that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed : [Provided that this section shall not apply to the person, who derives income of the nature referred to in [***] section 44B or 72[section 44BBA], on and from the 1st day of April, 1985 or, as the case may be, the date on which the relevant section came into force, whichever is later : Provided further that] in a case where such person is required by or under any other law to get his accounts audited [***], it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and [furnishes by] that date the report of the audit as required under such other law and a further report [by an accountant] in the form prescribed under this section. Explanation.—For the purposes of this section,— (i) “accountant” shall have the same meaning as in the Explanation below sub-section (2) of section 288; [(ii) “specified date”, in relation to the accounts of the assessee of the previous year relevant to an assessment year, means the 31st day of October of the assessment year.]]
23 September 2008
AUDIT OF ACCOUNTS OF CERTAIN PERSONS CARRYING ON BUSINESS OR PROFESSION [SECTION 44AB] (i) It is obligatory in the following cases for a person carrying on business or profession to get his accounts audited before the “specified date” by a Chartered Accountant: (1) if the total sales, turnover or gross receipts in business exceeds Rs.40 lakhs in any previous year; or (2) if the gross receipts in profession exceeds Rs.10 lakhs in any previous year; or (3) where the assessee is covered under section 44AD, 44AE, 44AF, 44BB or 44BBB andclaims that the profits and gains from business are lower than the profits and gains computed on a presumptive basis. In such cases, the normal monetary limits for tax audit in respect of business would not apply.
29 April 2009
Every asessee who carries on business or professon if his gross receipt of turnvover is >40Lac from business or Rs 10 Lac from profession is liable to get his accout audited u/s 44AB, It not that only companies are laible. Any company, having recipts from business and profession below abvoe specified limit is not liable to get audited u/s 44AB.
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