Tax Audit of Different Entities

Some businesses are mandatorily required to obtain a tax audit and maintain the book of accounts.

Tax Audit Limit for Proprietorships

A person is required to get its accounts audited under section 44AB if its gross sales or gross receipts exceeds Rs. 1 Crore in case of business or Rs. 50 Lakhs in case of a profession during the relevant financial year.

The turnover limit for businesses which can opt for presumptive income scheme has been increased from Rs 1 crore to Rs 2 crore (From AY 2017-18).

Tax Audit Limit for Companies

All Companies including private limited company and one person company are required to conduct a tax audit every year, irrespective of annual turnover or capital. Books of accounts must be mandatorily maintained for company, irrespective of turnover.

Tax Audit Limit for Partnership Firms

Partnership firms involved in profession with gross receipts of more than Rs.50 lakhs must complete a tax audit. Partnership firm involved in doing business must complete tax audit, if sales turnover exceeds Rs.1 crores.

Tax Audit Limit for LLP

LLP having an annual turnover of more than Rs.40 lakhs or capital contribution of Rs.25 lakhs are required to be audited. Books of accounts must be mandatorily maintained for Limited Liability Partnerships, irrespective of turnover.

Let's get in touch

Get in touch with us to understand our services a little more. Consultation is free, your time is not