Threshold Limit
Of
Turnover/Gross Receipts
For
Presumptive Taxation
Threshold Limit of tax audit under section
44AB and section 44AD
Where in budget there is, Increase in the
turnover limit under Presumptive taxation scheme under section 44AD of the
Income Tax Act to 2 crores to bring big relief to a large number of assessees
in the MSME category.
Which is further clarified by press release,
as under
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.( Old provision of law says)
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. (Now)
The
higher threshold for non-audit of accounts has been given only to assessees
opting for presumptive taxation scheme under section 44AD.
