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Income tax audit limit f. y 2019-20

ARVIND (ACCOUNTANT) (131 Points)

17 April 2020

is Income tax audit limit for individual

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11 Replies

RAJA P M ("Do the Right Thing...!!!") (127355 Points)
Replied 17 April 2020

As per sec 44AB :
For Business Rs 1cr...
For Professional Rs. 50 lakhs...

2 Like

Shivam RC (Student) (23683 Points)
Replied 17 April 2020

For FY 2019-20 :

As per the Provision of Section 44AB of the Income Tax Act 1961, TAX AUDIT OF ACCOUNTS is mandatory when :

Incase of BUSINESS : When your Turnover in Business exceeds Rs. 1 crore.

Incase of PROFESSION : When your Gross Receipts in Profession exceeds Rs. 50 lakhs.

For FY 2020-21 :

Section 44AB of the Income Tax Act 1961 was amended vide the Finance Act 2020. The limit of Tax Audit was increased to "Rs. 5 CRORE" in case of Business from Rs. 1 crore.

3 Like

ARVIND (ACCOUNTANT) (131 Points)
Replied 18 April 2020

Thank you sir

Shivam RC (Student) (23683 Points)
Replied 18 April 2020

You're always Welcome Sir...🙏

RAJA P M ("Do the Right Thing...!!!") (127355 Points)
Replied 18 April 2020

You are welcome dear

Neethi V. Kannanth (.) (19015 Points)
Replied 18 January 2021

When does section 44AD and 44ADA apply?

Rajesh Nahar (NA) (79 Points)
Replied 22 January 2021

I think the new 5 Crore limit applicable from FY 19-20 (AY 20-21) itself. Pls verify once.

Ayushi Arora (298 Points)
Replied 15 February 2021

A taxpayer is required to have a tax audit carried out if the sales, turnover, or gross receipts of business exceed Rs 1 crore in the financial year. However, a taxpayer may be required to get their accounts audited in certain other circumstances. We have categorized the various circumstances in the tables mentioned below:

NOTE: The threshold limit of Rs 1 crore for a tax audit is proposed to be increased to Rs 5 crore with effect from AY 2020-21 (FY 2019-20) if the taxpayer’s cash receipts are limited to 5% of the gross receipts or turnover, and if the taxpayer’s cash payments are limited to 5% of the aggregate payments.