INCREASE IN THRESHOLD LIMIT FOR AUDIT OF PROFESSIONALS
INTRODUCTION OF PRESUMPTIVE TAXATION SCHEME FOR PROFESSIONALS
April 30, 2016INCREASE IN THRESHOLD LIMIT OF PRESUMPTIVE TAXATION SCHEME FOR PERSONS HAVING BUSINESS INCOME
April 30, 2016The existing provision of Section 44AB provides for compulsory audit for professionals whose gross receipts exceed Rs.25 lakhs.
It is proposed to amend the said Section and raise the audit limit from Rs.25 lakhs to Rs.50 lakhs.
The increase in threshold for audit of businesses has not been increased from 100 lakhs to 200 lakhs to keep it in tune with the revision of limits in 44AD. This may give rise to a case where corporate assesses would be subject to tax audit if the turnover exceeds Rs 100 lakhs.
This amendment will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-18 and subsequent assessment years.