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Tuesday, March 20, 2012

Limit of Turnover for audit section 44AB has increased to 1 Crore

Under section 44AB of income tax act, every person who is running a business or profession needs to get his accounts audited for filing the income tax return. However, there is a limit in this provision above this it must to get his account audited. Section 44AB gives some relief to the small and medium enterprises in this section. According to the relief under section 44AB the person carrying on business needn’t to get his account audited if the total turnover/sales/receipt of the year not exceeds Rs. 60 lakh.

Similarly the person carrying on profession has the limit of 15 lakh. If the total receipt/turnover of the year not exceeds Rs. 15 lakh, he has the facility to not audit his accounts.

In this annual budget, the limit of section 44AB of income tax act has been increased. Now the limit for business is increased to 1 Crore whereas the limit for profession is increased to 25 Lakhs to get his account audited. This will be applicable for the financial year 2012-13 and the analysis year 2013-14.

There is a lot of headache in get accounts audited because audit is done by professional Chartered accountant and they are expert to find the mistakes. Second problem is that they have very high fees for audit. So this step will give some relief to the small and medium enterprises.

The limit for get account audited for different financial years as are follows.
F year                         Business limit                         profession limit
2009-10                         40 lakh                                  10 lakh
2010-11 and 11-12        60 lakh                                  15 lakh
2012-13                         1 Crore                                  25 Lakh     
Tags-section 44ab of income tax act,section 44ab,limit of sales u/s 44ab,audit limit section,44ab limit for fy 2011-12,audit limit for fy 2011-12,audit limit for fy 2012-13

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