Tax audit limit increased from forty lakh rupees to sixty lakh rupees in case of persons carrying business, and tax audit limit increased from ten lakh rupees to fifteen lakh rupees in case of persons carrying profession.
Under the existing provisions of section 44AB, every person carrying on business is required to get his accounts audited if the total sales, turnover or gross receipts in business exceed forty lakh rupees in the previous year.
See also: Changed threshold limit of TDS after budget 2010
Similarly, a person carrying on a profession is required to get his accounts audited if the gross receipts in profession exceed ten lakh rupees in the previous year.
In order to reduce compliance burden of small businesses and professionals, it is proposed to increase the aforesaid threshold limit from forty lakh rupees to sixty lakh rupees in the case of persons carrying on business and from ten lakh rupees to fifteen lakh rupees in the case of persons carrying on profession.
See also: Highlights of budget 2010 related to direct and indirect taxes
In view of the amendment proposed above, it is also proposed to increase the maximum penalty, leviable under section
271B for failure to get accounts audited under section 44AB or to furnish a report of such audit, from one lakh rupees to one lakh fifty thousand rupees.
It is also proposed that for the purpose of presumptive taxation under section 44AD, the threshold limit of total turnover or gross receipts would be increased from forty lakh rupees to sixty lakh rupees.
These amendments are proposed to take effect from 1st April, 2011 and will, accordingly, apply in relation to the assessment year 2011-12 and subsequent years.
Related posts:
- Changed Threshold Limit of TDS after Budget 2010
- Income Tax Exemption Limit Increased | Union Budget 2009 Taxation Highlights
- Limit of wealth tax increased
- Union Budget 2010: New Income Tax Rates for A.Y. 2011-12
- Budget 2011-12 Government May Hike Tax Exemption Limits
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{ 2 comments… read them below or add one }
HELLO FIRST OF ALL I M VERY IMPRESSED UR WEBSITES BUT I WANT TO THAT IF U SEND ME ALERT ON MY MOBILE DAILY BASIS,FOR EX.TDS AMMANDEMENT,TDS RATES,IT RATES AND ETC.
If a person having business and previously his business falls under cealing of 40 lacs now after increase in limit whther he don’t have to go for tax audit.
Gross receipt is approx 50 lacs.