Any person carrying on a business must get accounting records audited if turnover exceeds Rs 2 crore under Section 44AB of Income Tax Act. Read in detail about audit and accounting rules for businesses here. With the change in turnover limit for presumptive income, there has been some confusion about applicability of audit for businesses and professions. Let’s understand this in detail.
Audit for Businesses
Starting financial year FY 2016-17, the turnover limit for businesses, which can opt for presumptive income scheme, has been increased from Rs 1 crore to Rs 2 crore. For financial year FY 2016-17, audit will apply for businesses with turnover in excess of 2 crore.
Audit for Professionals
Starting financial year FY 2016-17, presumptive income scheme has been extended to professionals with receipts up to Rs 50 lakhs. Under this scheme, their income is assumed to be 50% of receipts. Books of accounts are not required to be maintained and audit is not applicable.
Starting financial year FY 2016-17, the turnover limit for audit for professionals continues to be 25 lakhs. There is no amendment to Section 44AB. There is no change in audit requirement for professionals NOT covered under presumptive scheme.
a) We do Tax Audit for Business and Professional.
b) Advice on managing and planning qualified and disqualified expenses and all Statutory dues.