Audit for Businesses
A person is required to get its accounts audited under section 44AB if its gross sales or gross receipts exceeds Rs. 1 Crore in case of business or Rs. 50 Lakhs in case of a profession during the relevant financial year.
The turnover limit for businesses which can opt for presumptive income scheme has been increased from Rs 1 crore to Rs 2 crore (From AY 2017-18).
Thus, there has been no change in the audit limit for businesses who are not opting for presumptive income scheme.
Audit for Professionals
A person carrying on profession having gross receipts exceeding Rs. 50 Lakhs is required to conduct a tax audit. (Tax Audit limit is Rs 50 lakhs from FY 2016-17 onwards).
- The scheme of presumptive income has been extended to professionals from financial year FY 2016-17 (AY 2017-18), with receipts up to Rs 50 lakhs. In this presumptive scheme, their income will be assumed to be 50% of receipts. Also, Books of accounts are not required to be maintained and audit is not applicable.
FY 2016-17 Onwards – Turnover Limit
Business not under Presumptive Income Scheme
Professionals not under Presumptive Income Scheme
Business under Presumptive Income scheme u/s 44AD
Professionals under Presumptive Income scheme u/s 44ADA