A.Y.2018-19: Tax Audit Limit for Businesses & Professionals


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A.Y. 2018-19 : Tax Audit Limit for Businesses:

If the total sales, turnover or gross receipt in business for the previous year exceeds Rs. 1 crore (Rs. 2 crore in case of person, who declares business profit in accordance with the provisions of section 44AD (1) then you are required to do tax audit your books of accounts from Chartered Accountant.

A.Y. 2018-19 : Tax Audit Limit for Profession:

If the gross receipts in profession for the previous year exceeds Rs. 50 Lakhs they you are required to do tax audit of your books of accounts from Chartered Accountants.

Tax Audit Limit for Persons Covered U/s 44AD, 44AE, 44AF, 44BB or 44BBB:

If such person claims that the profit and gains from the business are lower than the profit and gains computed under these sections (irrespective of his turnover) then he shall have to get his accounts audited by a Chartered Accountant.

Tax Audit Limit U/s 44ADA:

Where a person who is carrying on a profession referred t oi section 44ADA and claims that income form such profession is lower than 50% of the gross receipt of the profession; and his income exceeds the maximum amount which is not chargeable to income tax is any previous year. he shall get his account audited by a Chartered Accountant.

Tax Audit Limit U/s 44AD(4):

If a persons carrying on business is covered by the provisions of section 44AD(4) and his income exceeds the maximum amount which is not chargeable to income-tax then he shall get his account audited by a Chartered Accountant.

Due Dates of Filing Tax Audit Report:

30th September is the due date to filing tax audit report under section 44AB for all the assessee. The persons who are not required to audit their due date to filing income tax return is 31st July (31 Aug Extended for AY 2018-19)

Where the assessee is required to furnish a report of a chartered accountant as referred to in section 92E relating to international transaction or specified domestic transaction then the due date to submit audit report is 30th November.

Audit Report Format:

3CA, 3CD – Accounts audited under any other law
3CB, 3CD – Accounts audited under I.T. act

Penalty on Failure to Get Audit Report:

As it is mandatory and compulsory to get account audit if the asseesee falls in above conditions specified. Income Tax act has provision to levy penalty on failure to get account audit before due date i.e Rs.1,50,000 or 0.5% of gross receipt or turnover, whichever is less.
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