44AB threshold limit.
Sam Ubez (15 Points)
24 November 2021
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160327 Points)
Replied 25 November 2021
Every person –
(a) carrying on business shall, if his total sales, turnover or gross receipts, in business exceed or exceeds
> one crore rupees in any previous year ..................... (when cash transaction is more than 95%)
In Budget 2020, Section 44AB was amended and the threshold limit was increased from Rs.1 Crore to Rs. 5 Crore in order to ease the compliance for taxpayer & to boost non-cash transactions, subject to the condition that:
In other words, more than 95% of the business transactions (both receipts & payments) shall be done through banking channels.
From A.Y 2022-23, The Ministry of Finance has increased the threshold limit from, Rs. 5 Crore to Rs. 10 Crore in order to ease the compliance for taxpayer & to boost non-cash transactions.
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