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Tax audit limit for fy 2016-17
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
Replies (13)
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. |
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. |
Thank you sir
Tax audit Limit is 1 crore only
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. |
Shailedra Tax audit limit not changed it is 1crore only. For 44AD it is 2crore. kindly check once
if we apply sec 44 Ad then only limit is 2 cr rs otherwise it is only 1 cr rs
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.
Ms Madhavi , How sure are on this ? Turn over below 2 cr and profit below 8% , will it require audit ? is it mandatory ?
Ya Correct Mrs. Madhavi
Thanks
FOr F Y 2016-2017 A Y 2017-18 the Presumptive Income Limit is 2 Crore and 44AB is Still 1 Crore
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