Tax Audit Limit: In this article, we will discuss about compulsory tax audit of accounts for A.Y.2019-20 (from 1-4-2018 to 31-03-2019).
You can find here tax audit limit for businesses, tax audit limit for professionals (like doctors, accountants, architects etc.
Some visitors have lots of confusion about tax audit limit for A.Y. 2019-20 because there are lots of recent changes in finance bill. We will cover all amendments til the date regarding tax audit.
Table of contents
- Tax Audit Limit for Business & Profession for A.Y. 2019-20
- FAQ on Tax Audit Limit
- Tax Audit Limit for Businesses Year Wise
- Tax Audit Limit for Profession Year Wise
Tax Audit Limit for Business & Profession for A.Y. 2019-20
Here you can check the audit limit for business & profession for A.Y. 2019-20. There are lots of questions arises in the mind of taxpayers like should I require to do tax audit? What is the limit of turnover to do tax audit? who is mandatorily subject to tax audit?
|Category of Persons||Threshold|
|Business||Sales/Turnover or Gross Receipt Exceeds Rs.1 Crore|
|Profession||Gross Receipts Exceeds Rs. 50 Lakhs|
|Business u/s 44AD – Complete Detail||Sales/Turnover or Gross Receipt Exceeds Rs.2 Crore|
|Profession u/s 44ADA – Complete Detail||Declaring his income at amount less than 50% of his gross receipts and whose income exceeds the basic exemption limit for relevant previous year.|
|Business which is not eligible to claim presumptive taxation under section 44AD due to opting for presumptive taxation in one tax year and not opting for presumptive tax for any of the subsequent 5 consecutive years||If income exceeds maximum amount not chargeable to tax in the subsequent 5 consecutive tax years from the tax year where presumptive taxation is not opted for|
Non-residents deriving income from shipping business/operation of aircraft covered u/s 44AB or 44BBA, are not required to get their accounts audited.
Truck operators and persons engaged in specified business declaring their income at an amount less than the amount computer under section 44AE, 44BB or 44BBB, as the case may be.
FAQ on Tax Audit Limit
Due Dates of Filing Tax Audit Report
30th September is the due date to filing tax audit report under section 44AB for all the assessee. The persons who are not required to audit their due date to filing income tax return is 31st July.
Where the assessee is required to furnish a report of a chartered accountant as referred to in section 9E relating to international transaction or specified domestic transaction then the due date to submit audit report is 30th November.
Who will do Audit Your Account Books?
In India, Chartered Accountant will audit the account and prepare the report as prescribed in Income Tax Act. They are qualified for accounts and having degree of Chartered Accountancy (CA) from ICAI. They charge fee for their service as prescribed by ICAI. Assessee can also authorize Chartered Accountant to file their income tax return on his behalf or file by himself. It is not mandatory to file income tax return by CA; Only audit report is mandatory. The audit report must be submit before the due dates.
Audit Report Format:
3CA, 3CD – Accounts audited under any other law
3CB, 3CD – Accounts audited under I.T. act
Penalty on Failure to Get Audit Report
As it is mandatory and compulsory to get account audit if the asseesee falls in above conditions specified. Income Tax act has provision to levy penalty on failure to get account audit before due date i.e Rs.1,50,000 or 1/2% of gross receipt or turnover, whichever is less.
Tax Audit Limit for Businesses Year Wise
- The tax audit limit for A.Y.2019-20 is Rs. 1 crore (Rs. 2 crore in case of person, who declares business profit in accordance with the provisions of section 44AD (1))
- The tax audit limit for A.Y.2018-19 was Rs. 1 crore (Rs. 2 crore in case of person, who declares business profit in accordance with the provisions of section 44AD (1))
Tax Audit Limit A.Y. 2017-18
- The tax audit limit for A.Y.2017-18 was Rs. 1 crore (Rs. 2 crore in case of person, who declares business profit in accordance with the provisions of section 44AD (1))
A.Y.2013-14 to 2016-17
- Rs. 1 crore
A.Y. 2011-12 to 2012-13
- Rs. 60 Lakh
- Rs. 40 Lakh
Tax Audit Limit for Profession Year Wise
The tax audit limit for A.Y.2019-20 is Rs. 50 Lakhs.
The tax audit limit for A.Y.2018-19 was Rs. 50 Lakhs.
Tax Audit Limit A.Y. 2017-18
The tax audit limit for A.Y.2017-18 was Rs. 50 Lakhs.
A.Y. 2013-14 to 2016-17
- Rs. 25 Lakhs
A.Y. 2011-12 and 2012-13
- Rs. 15 Lakhs
- Rs. 10 Lakhs