As per section 44AB, who is compulsorily required to get his accounts audited, i.e., who is covered by tax audit?
Answer As per section 44AB , following persons are compulsorily required to get their accounts audited : • A person carrying on business, if his total sales, turnover or gross receipts (as the case may be) in business for the year exceed or exceeds Rs. 1 crore. This provision is not applicable to the person, who opts for presumptive taxation scheme under section 44AD and his total sales or turnover doesn't exceed Rs. 2 crores. Note: The threshold limit, for a person carrying on business, is increased from Rs. 1 Crore to Rs. 10 crores in case when cash receipt and payment made during the year do not exceed 5% of total receipt or payment, as the case may be. In other words, more than 95% of business transactions should be done through banking channels. • A person carrying on profession, if his gross receipts in profession for the year exceed Rs. 50 lakhs. • An assessee who declare profit for any previous year in accordance with section 44AD and he decreases profit f...