Every person carrying on business is required to get his/her accounts audited under section 44AB if the total sales, turnover or / gross receipts in the previous year exceed Rs. 1 Crore (Hundred lakh rupees).
Similarly, a person carrying on a profession is required to get his/her accounts audited if the total sales, turnover or / gross receipts in the previous year exceed Rs. 25 lakh (twenty five lakh rupees.)
Earlier these limits were on lower side .
Year wise income tax (IT) audit limit for business & profession is given below
|
FINANCIAL YEAR (FY)
|
BUSINESS LIMIT
|
PROFESSIONAL
|
|
2009-10
|
Rs. 40 lakh
|
Rs. 10 Lakh
|
|
2010-12
|
Rs. 60 Lakh
|
Rs. 15 Lakh
|
|
From 2012 -13
|
Rs.1 Crore
|
Rs. 25 Lakh
|
However in specific cases accounts of person carrying business having turnover upto Rs. 1 crore are also liable to be audited under Income tax act. This is due to presumptive tax scheme offered under Section 44AD .
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