My turnover is 90,00,000 Fy 2016-2017.
What is the turnover limit for audit under section 44AB of Income Tax Act, 1961?
There is confusion every where on turnover limit of audit under section 44AB of Income Tax Act, 1961.
The turnover is kept at 1 crore. So if your turnover is more than 1 crore you need to get audit done.
However there is another section 44AD, which has a turnover limit of 2 crores.
So if you are going for section 44AD (profit should be equal or more than 8% of turnover), then audit limit is 2 crore otherwise it is 1 crore.
This must be understood from view of a private limited company. Companies are not eligible for 44AD and hence for them the audit limit is 1 crore and for others it is 2 crore.
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