Tax Audit Limit for Businesses & Professionals A.Y.2017-18

In this article, we will discuss about compulsory tax audit of accounts for A.Y.2017-18. You can find here tax audit limit for businesses, tax audit limit for professionals for assessment year 2017-18 and previous years.

Some visitors have lots of confusion about tax audit limit for A.Y. 2017-18 and A.Y. 2018-19 because there are lots of recent changes in finance bill 2016 and finance bill 2017.

Updated on 31-08-2017 – Order under section 119 of the Income-tax Act, 1961 – Extension of due date for filing report of audit as well tax-returns from 30.09.2017 to 31.10.2017 under the Income-tax Act, 1961​​​ – Download here

Tax Audit Limit for Businesses

A.Y. 2017-18

  • 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.2013-14 to 2016-17

  • Rs. 1 crore

A.Y. 2011-12 to 2012-13

  • Rs. 60 Lakh

A.Y. 2010-11

  • Rs. 40 Lakh

Tax Audit Limit for Profession

A.Y. 2017-18

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.

A.Y. 2013-14 to 2016-17

  • Rs. 25 Lakhs

A.Y. 2011-12 and 2012-13

  • Rs. 15 Lakhs

A.Y. 2010-11

  • Rs. 10 Lakhs

Tax Audit Limit for Persons Covered under Section 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 sectiosn (irrespective fo his turnover) then he shall have to get his accounts audited by a Chartered Accountant.

Tax Audit Limit Under Section 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 Under Section 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.

Where the assessee is required to furnish a report of a chartered accountant as referred to in section 9E relating to international transaction or specified domestic transaction then the due date to submit audit report is 30th November.

Who will do Audit Your Account Books?

In India, Chartered Accountant will audit the account and prepare the report as prescribed in Income Tax Act. They are qualified for accounts and having degree of Chartered Accountancy (CA) from ICAI. They charge fee for their service as prescribed by ICAI. Assessee can also authorize Chartered Accountant to file their income tax return on his behalf or file by himself. It is not mandatory to file income tax return by CA; Only audit report is mandatory. The audit report must be submit before the due dates.

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 1/2% of gross receipt or turnover, whichever is less.

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9 Comments

Add a Comment
  1. Mumtaz Samsudeen

    Bref explanation regarding tax audit

  2. THANK YOU VERY HELPFULL TO EVERY BUDY

  3. Really too much Helpful

  4. Sir I filed ITR-4 and fill income in “No Account Case” Column. The Profit was 5 percent filed by me in ITR. Now I have a notice that it is a defective return please file B/s & P&L. Sir I want to know will i get penalety of audit, if i filed B/s & P&L. I filed gross receipt 63 lacs & profit is 3.38 lacs.

  5. For, stock market speculater
    Buy sell of stocks value through out year
    Or turnover of fund (cheques)? Calculated

  6. Thanku really helpful Article

  7. Thank you
    Easy and simple explanation
    it really help me to know more.

  8. very useful thanks

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