Is 44AB Audit Compulsory for Your Business or Profession?

Find out if the 44AB audit is mandatory for your business or professional practice under the Income Tax Act. Learn the thresholds now.

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Section 44AB of the Income Tax Act, relating to the audit of accounts, is not compulsory for everyone. It is mandatory for businesses with a turnover of more than ₹1 crore and for professionals with a gross receipt of more than ₹50 lakh. For businesses opting for presumptive taxation, the threshold is ₹2 crore. Consult a tax advisor to ensure compliance based on your specific circumstances.

FAQs & Answers

  1. What is Section 44AB of the Income Tax Act? Section 44AB of the Income Tax Act mandates the audit of accounts for certain businesses and professionals based on specified income thresholds. It ensures compliance with tax regulations.
  2. Who needs to get an audit under Section 44AB? An audit under Section 44AB is compulsory for businesses with a turnover exceeding ₹1 crore and for professionals with gross receipts over ₹50 lakh. For businesses opting for presumptive taxation, the limit is ₹2 crore.
  3. What are the penalties for not complying with Section 44AB? Failure to comply with Section 44AB can result in penalties, including fines and potential scrutiny from tax authorities, highlighting the importance of timely audits.
  4. Can I consult a tax advisor for Section 44AB compliance? Yes, consulting a tax advisor is recommended to ensure that you meet the necessary criteria and comply with Section 44AB based on your specific business circumstances.

Watch More

For more insights related to taxation and compliance, check out our other videos on tax regulations and financial audits. Staying informed can save you time and money, and help you navigate the complexities of tax obligations efficiently.

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