Tax audit limit for f.y.2016-2017 & a.y.2017-2018

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Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2017 Please let me the tax audit limit for f.y.2016-2017.
My company's turnover for the year 2016-2017 is Rs.1.84 Cr. Could any one tell me tax audit is applicable to my company or not? If not applicable what will be the due date for return filling?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 May 2017 If you opt for 44AD tax audit not applicable to you else tax audit applicable to you as turnover exceeds one crore. If not applicable the due date is 31st July 2017

Expert : Anonymous

Expert : Anonymous (Expert)

26 May 2017 The Finance Act 2016 (applicable for the AY 2017-18) has enhanced the turnover limit from Rs. 1 crore to Rs. 2 crore for assessee's claiming presumptive taxation benefit under section (u/s) 44AD of the Income Tax Act 1961 (the Act). This therefore created a doubt whether tax audit limit u/s 44AB of the Act is simultaneously increased from Rs. 1 crore to 2 crores or not. The dust is set at rest by CBDT press release dated 20.06.2016 clarifying that higher threshold limit for non-audit of accounts has been given only to assesses opting for presumptive taxation scheme u/s 44AD of the Act. In other words, it means that turnover / total sales / gross receipt level fixed to be greater than Rs.1 crore attracting tax audit provisions u/s 44AB of the Act still prevails but assesses who claim benefit of section 44AD of the Act can avoid tax audit upto the total turnover limit of Rs. 2 crores even. So you will be liable for tax audit if u opt for Sec 44AD then no audit is required.

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