21 August 2008
Sec.44AB of IT Act,1961 states about the conditions where in compulsory Audit of Accounts is required.The explanation is as follows : Every person: „« 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 „« carrying on profession shall, if his gross receipts in profession exceed ten lakh rupees in any previous year; or „« 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, SHALL „« 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: This section shall not apply to the person, „« who derives income of the nature referred to in section 44B or section 44BBA or 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: „« 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 in the form prescribed under this section.
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