Understanding the Turnover Limit for 44AB Audit in India

Learn the turnover limits for audits under Section 44AB of the Income Tax Act in India.

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Under Section 44AB of the Income Tax Act in India, a taxpayer must get their accounts audited if their turnover exceeds ₹1 crore for businesses or ₹50 lakhs for professionals in a financial year. Special conditions can raise this limit.

FAQs & Answers

  1. What is the turnover limit for businesses under 44AB? The turnover limit for businesses under Section 44AB of the Income Tax Act is ₹1 crore in a financial year.
  2. What is the turnover limit for professionals under 44AB? For professionals, the turnover limit under Section 44AB is ₹50 lakhs in a financial year.
  3. Are there any special conditions that affect the turnover limit under 44AB? Yes, there are special conditions that can raise the turnover limits under Section 44AB, depending on the specific circumstances of the business or profession.
  4. What happens if my turnover exceeds the limit under 44AB? If your turnover exceeds the prescribed limits under Section 44AB, you are required to get your accounts audited by a qualified chartered accountant.