{"id":22984,"date":"2022-08-16T15:32:25","date_gmt":"2022-08-16T10:02:25","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=22984"},"modified":"2022-09-26T13:24:04","modified_gmt":"2022-09-26T07:54:04","slug":"tax-audit-limit","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/tax-audit-limit\/","title":{"rendered":"What is Tax Audit Limit for the AY 2022-23?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d0fc92eb759\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d0fc92eb759\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/tax-audit-limit\/#What_is_revise_Income_Tax_Audit_Limits_for_FY_2021-22\" title=\"What is revise Income Tax Audit Limits for FY 2021-22?\">What is revise Income Tax Audit Limits for FY 2021-22?<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/tax-audit-limit\/#If_a_person_involved_in_profession_choosing_for_presumptive_taxation_Us_44ADA\" title=\"If a person involved in profession &amp; choosing for presumptive taxation U\/s 44ADA:\">If a person involved in profession &amp; choosing for presumptive taxation U\/s 44ADA:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/tax-audit-limit\/#Below_are_%E2%80%9Cspecified_profession%E2%80%9D_%E2%80%93_Sec_44AA\" title=\"Below are\u00a0 \u201cspecified profession\u201d \u2013 Sec 44AA\">Below are\u00a0 \u201cspecified profession\u201d \u2013 Sec 44AA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/tax-audit-limit\/#If_a_person_involved_in_business_choosing_for_presumptive_taxation_Us_44AD\" title=\" If a person involved in business &amp; choosing for presumptive taxation U\/s 44AD:\"> If a person involved in business &amp; choosing for presumptive taxation U\/s 44AD:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/tax-audit-limit\/#No_Penalty_for_Failure_of_Tax_Audit_Us_271B_in_case_of_Reasonable_Causes_with_Case_Laws\" title=\"No Penalty for Failure of Tax Audit U\/s 271B in case of Reasonable Causes with Case Laws.\">No Penalty for Failure of Tax Audit U\/s 271B in case of Reasonable Causes with Case Laws.<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22987\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/08\/Tax-audit-Audit-Limits..png\" alt=\"Tax audit Audit Limits.\" width=\"1280\" height=\"640\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/08\/Tax-audit-Audit-Limits..png 1280w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/08\/Tax-audit-Audit-Limits.-300x150.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/08\/Tax-audit-Audit-Limits.-1024x512.png 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/08\/Tax-audit-Audit-Limits.-768x384.png 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/08\/Tax-audit-Audit-Limits.-800x400.png 800w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"What_is_revise_Income_Tax_Audit_Limits_for_FY_2021-22\"><\/span><span style=\"color: #000080;\">What is revise Income Tax Audit Limits for FY 2021-22?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Under the Income tax section 44AB of the Income tax Act, every person carrying on business is needed to get his accounts audited, if his Total turnover, sales, or gross receipts, in business More than INR 1 Cr in any previous year.<\/p>\n<p>If a person Doing the profession he is needed to get his Books of accounts audited, In case Total receipt in profession More than, INR 50 lakh in any previous year.<\/p>\n<p>With effect from <a href=\"https:\/\/www.caindelhiindia.com\/blog\/latest-amendment-in-tax-audit-u-s-44a\/\">Finance Act 2020<\/a>, the above threshold limit for a person carrying on business was increased from INR 1 Cr to INR 5 Cr in cases where,-<\/p>\n<ul>\n<li>Total receipts in cash during the previous year does not More than 5% of such receipt; &amp;<\/li>\n<li>Total payments in cash during the previous year does not more than 5% of such payment.<\/li>\n<\/ul>\n<p><strong>Above changes is made to decreased compliance burden on MSME enterprises.<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-22986\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/08\/changes-in-tax-audit-turnover-limit-to-rs.-10-crore-under-section-44ab-budget-2021.png\" alt=\"tax-audit-turnover-limit-to-rs.-10-crore-under-section-44ab-budget-2021\" width=\"813\" height=\"349\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/08\/changes-in-tax-audit-turnover-limit-to-rs.-10-crore-under-section-44ab-budget-2021.png 650w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/08\/changes-in-tax-audit-turnover-limit-to-rs.-10-crore-under-section-44ab-budget-2021-300x129.png 300w\" sizes=\"(max-width: 813px) 100vw, 813px\" \/><\/p>\n<p>It is suggested to increase the threshold from 5 Cr to 10 Cr in circumstances specified above in order to encourage non-cash transactions, promote the digital economy, and further reduce small and medium enterprises&#8217; compliance burden.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"If_a_person_involved_in_profession_choosing_for_presumptive_taxation_Us_44ADA\"><\/span><span style=\"color: #000080;\"><strong>If a person involved in <\/strong><strong>profession<\/strong><strong> &amp; choosing for presumptive taxation U\/s <\/strong><strong>44ADA<\/strong><strong>:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table width=\"727\">\n<tbody>\n<tr>\n<td><strong>Last Year <\/strong>aggregate turnover, sales, or gross receipts <strong>limit <\/strong><\/td>\n<td><strong>Profit Amount with respect to turnover (in %)<\/strong><\/td>\n<td><strong>Status of Applicable of Tax Audit on Assesses<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Excess than INR Fifty Lakhs<\/td>\n<td>N.A.<\/td>\n<td>Yes, Tax Audit is applicable U\/s 44AB(b)<\/td>\n<\/tr>\n<tr>\n<td>Upto INR Fifty Lakhs<\/td>\n<td>More than 50%<\/td>\n<td>NO<\/td>\n<\/tr>\n<tr>\n<td>Upto INR Fifty Lakhs<\/td>\n<td>less than 50% (Under Section 44ADA)<\/td>\n<td>Yes, Tax Audit is applicable U\/s 44AB(d)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22985\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/08\/tax-audit.jpg\" alt=\"tax audit\" width=\"900\" height=\"800\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/08\/tax-audit.jpg 900w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/08\/tax-audit-300x267.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/08\/tax-audit-768x683.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/08\/tax-audit-800x711.jpg 800w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Below_are_%E2%80%9Cspecified_profession%E2%80%9D_%E2%80%93_Sec_44AA\"><\/span><span style=\"color: #000080;\"><strong>Below are\u00a0 \u201cspecified profession\u201d \u2013 Sec 44AA<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Engineering profession \u2013 Services provided by consulting engineers, technical certification, structural engineers, design and drawing services etc.<\/li>\n<li>Legal profession \u2013 Services provided by an advocate\/firm of advocates.<\/li>\n<li>Company Secretary<\/li>\n<li>Cost Accountant, Chartered Accountant,<\/li>\n<li>Medical profession \u2013 Services provided by doctors.<\/li>\n<li>Interior decoration Services ie planning, designing, consulting etc.<\/li>\n<li>Profession of Advertising -film artiste such as an a director, actor, a cameraman,\u00a0 etc.<\/li>\n<li>Architectural profession \u2013 Services provided by an firm of Architects\/Architect<\/li>\n<li>Profession of Technical consultancy -business consultant, marketing consultant etc.<\/li>\n<li>Authorised representative \u2013 a person, who represents any other person, on payment of any fee or remuneration, before any Tribunal or authority constituted or appointed by or under any law for the time being in force<\/li>\n<li>Professional in sports \u2013 Sports Persons,\u00a0 Team Physicians and Physiotherapists, Event Managers, Commentators, Umpires and Referees, Coaches and Trainers, Anchors and Sports Columnists.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"If_a_person_involved_in_business_choosing_for_presumptive_taxation_Us_44AD\"><\/span><span style=\"color: #000080;\"><strong> If a person involved in business &amp; choosing for presumptive taxation U\/s 44AD:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 971px;\" width=\"825\">\n<tbody>\n<tr>\n<td><strong>Last Year Turnover limit <\/strong><\/td>\n<td><strong>Profit Amount with respect to turnover (in %)<\/strong><\/td>\n<td><strong>In case cash receipts less than 5 Percentage of Turnover<\/strong><\/td>\n<td><strong>In case cash payment less than 5 <\/strong>Percentage<strong> of total payment<\/strong><\/td>\n<td><strong>Status of Applicable of Tax Audit <\/strong><\/td>\n<\/tr>\n<tr>\n<td>Exceeds than INR Ten Cr.<\/td>\n<td>N. A.<\/td>\n<td>N. A.<\/td>\n<td>N. A.<\/td>\n<td>Yes, Tax Audit is applicable<\/td>\n<\/tr>\n<tr>\n<td>Exceeds than INR Two Cr but upto INR Ten Cr<\/td>\n<td>N. A.<\/td>\n<td>Yes<\/td>\n<td>Yes<\/td>\n<td>No<\/td>\n<\/tr>\n<tr>\n<td>Exceeds than Two Cr but upto INR Ten Cr<\/td>\n<td>N. A.<\/td>\n<td>No<\/td>\n<td>No<\/td>\n<td>Yes, Tax Audit is applicable<\/td>\n<\/tr>\n<tr>\n<td>Exceeds than One Cr but upto Two Cr<\/td>\n<td>Excess than 8 Percentage or 6 Percentage of Turnover<\/td>\n<td>N. A.<\/td>\n<td>N. A.<\/td>\n<td>No<\/td>\n<\/tr>\n<tr>\n<td>Exceeds than INR One Cr but upto Two Cr<\/td>\n<td>Less than 8 Percentage or 6 Percentage of Turnover<\/td>\n<td>N. A.<\/td>\n<td>N. A.<\/td>\n<td>Yes, Tax Audit is applicable.<\/td>\n<\/tr>\n<tr>\n<td>Less than INR One Crore<\/td>\n<td>More than 8 Percentage or 6 Percentage of Turnover<\/td>\n<td>N. A.<\/td>\n<td>N. A.<\/td>\n<td>No<\/td>\n<\/tr>\n<tr>\n<td>Less than INR One Crore<\/td>\n<td>Less than 8 Percentage or 6 Percentage of Turnover<\/td>\n<td>N. A.<\/td>\n<td>N. A.<\/td>\n<td>Yes, Tax Audit is applicable<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Key Note:<\/strong><\/p>\n<ul>\n<li>If total income more than the basic exemption limit only then tax audit is applicable.<\/li>\n<li>Where the Income Taxpayer is covered U\/s 44AB then he is required to get the books of accounts audited by a CA.<\/li>\n<li><a href=\"https:\/\/carajput.com\/publications\/draft-observation-for-tax-auditor-in-case-of-tax-audit-and-draft-of.pdf\">Income tax Audit report<\/a> would be furnished in under the form 3CB CD, where report of Tax Audit complete by the CA is to be file in Form No. 3CB &amp; details of audit are to be reported in Form No. 3CD.<\/li>\n<li>In case the Income Taxpayer is liable for Income tax &amp; that person fails to Complete Tax audit of Firm books of accounts than he is responsible for a payment of penalty of lower of the below two:\n<ul>\n<li>Rs. 1,50,000. or<\/li>\n<li>0.5 percentage of Total receipts.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"No_Penalty_for_Failure_of_Tax_Audit_Us_271B_in_case_of_Reasonable_Causes_with_Case_Laws\"><\/span><span style=\"font-family: Arial, Helvetica; color: #000080;\"><b>No Penalty for Failure of Tax Audit U\/s 271B in case of Reasonable Causes with Case Laws.<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>If the tax audit report is not submitted on time or before the deadline, no penalty under section 271B will be enforced. The provisions of section 271B must be applied, however, if the audit report is not submitted by the deadline.<\/li>\n<li>No Penalty for Failure of Tax Audit under section 271B of the Income Tax Act,1961 in case of Reasonable Causes with Case Laws<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Hope the information will assist you in your Professional endeavors. For query or help, contact: <a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0or call at 9555555480<\/p>\n<p>Popular blog:<\/p>\n<ul>\n<li><a href=\"https:\/\/carajput.com\/learn\/new-tds-deduction-provision-prevent-cash-transactions-of-more-than-1-crore-section-194n.html\"><strong>New TDS deduction No cash transactions exceeding 1 Crore -Section 194N<\/strong><\/a><\/li>\n<li><strong><a href=\"https:\/\/carajput.com\/learn\/deductions-under-section-80ccd-of-income-tax-act.html\">Deduction u\/s 80CCD of Income Tax Act, 1961<\/a><\/strong><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What is revise Income Tax Audit Limits for FY 2021-22? Under the Income tax section 44AB of the Income tax Act, every person carrying on business is needed to get his accounts audited, if his Total turnover, sales, or gross receipts, in business More than INR 1 Cr in any previous year. If a person &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[117],"tags":[5479,3294],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/22984"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=22984"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/22984\/revisions"}],"predecessor-version":[{"id":23375,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/22984\/revisions\/23375"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=22984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=22984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=22984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}