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audit limit

12 May 2018

sir if any person treding retail or wholesale bussines propritership farm in that what is maximum sale limit with out audit and same. side if any person start same bussines with partnership farm in that time what is the limit with out audit. mean when audit is nessasary and when not nessacary. sale limit what

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10 Replies

akshay kumar garg (student) (73 Points)
Replied 12 May 2018

for retail and wholesale limit of Rs. 1 crore turnover is applicable

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CA Rashmi Gandhi (Chartered Accountant) (86495 Points)
Replied 13 May 2018

In both cases limit is 01 crore....

2 Like

rama krishnan (12244 Points)
Replied 13 May 2018

I think the limit is 2 crores if the assessee opts for 44ad

1 Like

CA Rashmi Gandhi (Chartered Accountant) (86495 Points)
Replied 13 May 2018

Audit is compulsory above Rs 1 crore but you can opt u/s 44AD upto 2 crore.....

1 Like

rama krishnan (12244 Points)
Replied 13 May 2018

Rashmi mam... I think I also said the same..

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CA Rashmi Gandhi (Chartered Accountant) (86495 Points)
Replied 13 May 2018

Yes.... audit is also required when you opt u/s 44AD & turnover exceeds 1 crore....

rama krishnan (12244 Points)
Replied 13 May 2018

if you opt for 44AD then there's no question of auditing... could you please post the relevant provisions of the section in support of your statement mam?

CA Rashmi Gandhi (Chartered Accountant) (86495 Points)
Replied 13 May 2018

Agree with you ramakrishnan...

As per CBDT Press release

"Section 44AB of the Income-tax Act (‘the Act’) makes it obligatory for every person carrying on business to get his accounts of any previous year audited if his total sales, turnover or gross receipts exceed one crore rupees. However, if an eligible person opts for presumptive taxation scheme as per section 44AD(1) of the Act, he shall not be required to get his accounts audited if the total turnover or gross receipts of the relevant previous year does not exceed two crore rupees. The higher threshold for non-audit of accounts has been given only to assessees opting for presumptive taxation scheme under section 44AD."