Income Tax Audit Limit

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.

• chatComments
  +