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Tax audit limit for fy 2016-17

Shailendra Yadav (article) (71 Points)

10 June 2017

what is the Tax audit u/s 44AB limit for FY 2016-17 as limit u/s 44AD for FY 2016-17 is 2 crore

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13 Replies

(Guest)

The limit is two crore rupees u/s 44AB as well as section 44AD.

(Guest)

CBDT press release dated 20.06.2016 clarified that higher threshold limit (2 Cr) for non-audit of accounts has been given only to assesses opting for presumptive taxation scheme u/s 44AD of the Act.

For others, the limit is still 1Cr

5 Like

Shailendra Yadav (article) (71 Points)
Replied 10 June 2017

Audit Requirements

Audit of accounts is compulsory by a Chartered Accountant for the following persons

Tax Payer	Compulsory Audit required when
A person carrying on Business	If total sales, turnover or gross receipts are more than Rs. 1 crore (From FY 16-17, Rs. 2 crores)
A person carrying on Profession	If gross receipts are more than Rs. 25 lakhs (From FY 16-17, Rs. 50 lakhs)
A person covered under presumptive income scheme section 44AD	If income of the business is lower than the presumptive income calculated as per Section 44AD and the person’s total income is more than the minimum income which is exempt from tax.
A person covered under presumptive income scheme section 44AE	If income of the business is lower than the presumptive income calculated as per Section 44AE.

1 Like

Shailendra Yadav (article) (71 Points)
Replied 10 June 2017

Audit Requirements

Audit of accounts is compulsory by a Chartered Accountant for the following persons

Tax Payer	Compulsory Audit required when
A person carrying on Business	If total sales, turnover or gross receipts are more than Rs. 1 crore (From FY 16-17, Rs. 2 crores)
A person carrying on Profession	If gross receipts are more than Rs. 25 lakhs (From FY 16-17, Rs. 50 lakhs)
A person covered under presumptive income scheme section 44AD	If income of the business is lower than the presumptive income calculated as per Section 44AD and the person’s total income is more than the minimum income which is exempt from tax.
A person covered under presumptive income scheme section 44AE	If income of the business is lower than the presumptive income calculated as per Section 44AE.

Shailendra Yadav (article) (71 Points)
Replied 10 June 2017

Thank you sir

vishnu vardhan (Student) (63 Points)
Replied 10 June 2017

Tax audit Limit is 1 crore only

Shailendra Yadav (article) (71 Points)
Replied 10 June 2017

Audit Requirements

Audit of accounts is compulsory by a Chartered Accountant for the following persons

Tax Payer	Compulsory Audit required when
A person carrying on Business	If total sales, turnover or gross receipts are more than Rs. 1 crore (From FY 16-17, Rs. 2 crores)
A person carrying on Profession	If gross receipts are more than Rs. 25 lakhs (From FY 16-17, Rs. 50 lakhs)
A person covered under presumptive income scheme section 44AD	If income of the business is lower than the presumptive income calculated as per Section 44AD and the person’s total income is more than the minimum income which is exempt from tax.
A person covered under presumptive income scheme section 44AE	If income of the business is lower than the presumptive income calculated as per Section 44AE.

CA S Praveen Kumar Reddy (Chartered Accountant) (2195 Points)
Replied 10 June 2017

Shailedra Tax audit limit not changed it is 1crore only. For 44AD it is 2crore. kindly check once

rishabh kumar jain (Article) (32 Points)
Replied 11 June 2017

if we apply sec 44 Ad then only limit is 2 cr rs otherwise it is only 1 cr rs

CA Revanth Bharathwaj M (Freelance consultant in Direct Tax and Financial Reporting) (373 Points)
Replied 12 June 2017

For financial year 2016-17, unless you opt for 44AD or 44AE your tax audit limit stands at Rs. 1 Crore. Also, note that under section 44AD no partners' salary or interest allowed and if you wish to provide the same, you need to get accounts audited no matter what the profit % is.

Himanshu Lakhani (35 Points)
Replied 17 July 2017

Ms Madhavi , How sure are on this ? Turn over below 2 cr and profit below 8% , will it require audit ? is it mandatory ?

(Guest)

Only resident individual, HUF and Partnership firm can declare income under SEC 44AD. An LLP can not declare income under this section.

These eligible assesses can declare income on estimated basis in respect of any business except the business mentioned below ,if his gross turnover or gross receipts in the previous year does not exceed Rs. 2 Crore:-

1. A person carrying on profession as referred u/s44AA(1)

2. A person carrying income in the nature of Commission or brokerage.

3. A person carrying on any agency business

4. A person who is in the business of plying , hiring or leasing goods carriages.

Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.