Increase in Tax Audit limit – Section 44AB – Applicable w.e.f. A.Y. 2021-22
- As per section 44AB of the Act, any person carrying on business shall get his accounts audited, where his total sales or turnover or gross receipts in business exceeds Rs.1 crore in any financial year.
- As per Finance Act, 2021, the limit of Rs.1 crore has been increased to Rs.10 crore [As per Finance Act, 2020 – Rs.5 crore]; if aggregate of all receipts including sales/ Turnover/ gross receipts during financials year in cash does not exceed 5% of the total receipts; and aggregate of all payments including expenses incurred during financials year in cash does not exceed 5% of the total payments.
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