Any individual carrying on a business must get accounting documents audited if turnover exceeds Rs two crore under Section 44AB of Income Tax Act. Read in detail about accounting and audit rules for companies here. With the shift in turnover limit for low-income, there has been some confusion regarding applicability of audit for both businesses and professions. Let's understand that in detail.
Audit for Businesses
Starting business year FY 2016-17, the turnover limit for businesses, which can opt for a possible income scheme, has been enhanced from Rs 1 crore to Rs 2 crore. For the economic year FY 2016-17, the audit will implement for businesses including turnover in excess of 2 crores.
Audit for Professionals
Starting financial year FY 2016-17, possible income scheme has been increased to specialists with receipts up to Rs 50 lakhs. Under this system, their income is expected to be 50% of receipts. Books of statements are not obligated to be prepared and audit is not applicable.
Starting financial year FY 2016-17, the turnover goal for audit for specialists continues to be 25 lakhs. There is no measure to Section 44AB. There is no change in audit obligations for experts NOT covered under the circumstantial scheme.
a) We do Tax Audit for Business and Professional.
b) Advice on managing and preparation of qualified and excluded values and all Statutory dues.