Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
Section 44AB specifies that specific categories of individuals or businesses require tax audit by a chartered accountant to ensure compliance with the laws and keep fraudulent tax practices in check.
Table of Contents
Section 44AB of the Income Tax Act of 1961[1], persons involved in certain professions or exceeding a certain amount in business must get their account books audited by a chartered accountant.
Audit refers to inspecting or scrutinising book accounts to ensure they comply with the Income Tax Act and other related laws and check fraudulent practices.
There are three types of audit of the auditing process. They are given below:
The objectives of a tax audit can be summed up as follows:
From April 1, 2021, as per Finance Act 2021, the threshold limit of Rs 5 crore has been increased to Rs.10 crore if the transactions exceed 5% of the total transaction amount.
For FY 2023-24, an income tax audit is applicable based on the turnover of business or receipts from the profession. All the mandatory provisions related to audits are given in section 44AB.
If there is a sufficient reason for delay or non-filing of the audit report, then as per Section 273B, no penalty is applicable. Reasons allowed as per section 273B are:
A tax audit is conducted only on business or profession, not individual income. Auditing of accounts is a best practice that will ensure that the laws are adhered to and that there is no tax fraud or evasion. The chartered accountant in charge of audits has to ensure that the client’s accounts are in order and is also responsible for making accurate observations and reports to the government.
The tax audit limit for AY 2023-24 is Rs. 1 crore for businesses with more than 5% cash transactions. For businesses with less than 5% cash transactions, the tax audit limit is Rs. 10 crores.
The Tax audit limit for FY 2023-24 is Rs. 1 crore for businesses with more than 5% cash transaction and Rs. 10 crores for businesses with less than 5% cash transaction.
The audit limit for 2023-24 is the same as the tax audit limit, which is Rs. 1 crore for businesses with more than 5% cash transactions and Rs. 10 crores for businesses with less than 5% cash transactions.
The presumptive tax limit for FY 23 24 is Rs. 2 crores for businesses that opt for the presumptive taxation scheme under Section 44AD
The tax audit limit for FY 2024-25 is not yet known, as the budget for FY 2024-25 has not been announced. However, it is likely that the tax audit limit will remain the same as for FY 2023-24, which is Rs. 1 crore for businesses with more than 5% cash transactions and Rs. 10 crores for businesses with less than 5% cash transactions.
The presumptive tax limit for FY 23 24 is Rs. 2 crores for businesses that opt for the presumptive taxation scheme under Section 44AD.
The audit turnover limit for FY 22 23 is Rs. 1 crore for businesses with more than 5% cash transactions. For businesses with less than 5% cash transactions, the audit turnover limit is Rs. 10 crores.
The new audit limit for AY 2023-24 is Rs. 1 crore for businesses with more than 5% cash transactions and Rs. 10 crores for businesses with less than 5% cash transactions.
The income tax audit limit for FY 22 23 is Rs. 1 crore for businesses with more than 5% cash transactions and Rs. 10 crores for businesses with less than 5% cash transactions.
The limit of tax audit for FY 2023-24 is Rs. 1 crore for businesses with more than 5% cash transactions and Rs. 10 crores for businesses with less than 5% cash transactions.
The limit of ITR audit is the same as the limit of tax audit, which is Rs. 1 crore for businesses with more than 5% cash transactions and Rs. 10 crores for businesses with less than 5% cash transactions.
Yes, you can show profit below 8% without audit, as long as your total turnover or gross receipts does not exceed Rs. 50 lakh.
The turnover limit for 44AD for FY 2023-24 is Rs. 2 crores. This means that businesses that opt for the presumptive taxation scheme under Section 44AD can declare their profits without having to get their accounts audited, as long as their total turnover or gross receipts does not exceed Rs. 2 crores.
The presumptive tax limits for FY 2023-24 have been revised as follows:Section 44AD: The turnover limit for businesses that can opt for the presumptive taxation scheme under Section 44AD has been increased from Rs. 1 crore to Rs. 2 crores.Section 44ADA: The turnover limit for professionals that can opt for the presumptive taxation scheme under Section 44ADA has been increased from Rs 50 lakh to Rs. 75 lakh.
The applicability of tax audit for FY 22 23 is the same as for FY 2023-24, which is Rs. 1 crore for businesses with more than 5% cash transactions and Rs. 10 crores for businesses with less than 5% cash transactions.
Also Read: All you need to know about Tax Audit Report
Financial management is critical in the dynamic world of construction, where projects differ in...
SEBI issued guidelines regarding the utilization of e-KYC Aadhar Authentication Services in the...
An audit of a charitable trust can be both Voluntary or Compulsory and compulsory, depending on...
The Securities and Exchange Board of India (SEBI) issued a circular to amend the requirements f...
With the interest of the investors in the security markets, an authorized government on 20th Ma...
Are you human?: 7 + 5 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Generally, upon the completion of the Income-tax assessment, the tax department issues a notice u/s 156 of the ITA...
16 Feb, 2023
The current FY 2019-2020 closed on March 31 as usual, and the new financial year 2020-21started from April 1, 2020....
13 Apr, 2020
Chat on Whatsapp
Hey I'm Suman. Let's Talk!