Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Tax Audit Limit

Krishanu Majumder (Accountant) (182 Points)

08 February 2020

In finance bill 2020, it was proposed to increase the tax audit limit u/s 44AB to 5 cr from existing 1 cr.

My question is if the presumptive limit increased. If so, what the new limit is.

Thank in Advance.

Reply
Follow
Share

3 Replies

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 08 February 2020

No No...

please refer once again the FB 2020...

2 Like

sujith kumar dasa (banglore) (1496 Points)
Replied 09 February 2020

The limit increase under FB 2020 is when you are having 95% of trabsactions though Bank and less than 5% in cash.

However the presumptive tax limit is not increased.

1 Like

Kapadia Pravin (17264 Points)
Replied 09 February 2020

Let me put down the changes in 44AB

Turnover limit is 1 crore or more for assessees in general but but

Turnover limit will be 5 crores for those assessees (effective from FY 2020-2021)
---who has 95% or more of total receipts in digital mode /bank and
---who has 95% or more of total Payments in digital mode / bank

-----
For 44AD presumptive taxation turnover limit is as it is , upto 2 crores. No amendment in 44AD

1 Like