Tax audit turnover threshold limit increased to Rs. 5 crores for business. Due date of furnishing report made 31st October
Under section 44AB of the Act, every person carrying on business is required to get his accounts audited, if his total sales, turnover or gross receipts, in business exceed or exceeds one crore rupees in any previous year. In case of a person carrying on profession he is required to get his accounts audited, if his gross receipt in profession exceeds, fifty lakh rupees in any previous year.
In order to reduce compliance burden on small and medium enterprises, it is proposed to increase the threshold limit for a person carrying on business from one crore rupees to five crore rupees in cases where,-
(i) aggregate of all receipts in cash during the previous year does not exceed five per cent of such receipt; and
(ii) aggregate of all payments in cash during the previous year does not exceed five per cent of such payment.
Further, to enable pre-filling of returns in case of persons having income from business or profession, it is required that the tax audit report may be furnished by the said assessees at least one month prior to the due date of filing of return of income.
Presently the Income Tax Act mandates filing of audit report along with the return of income or by the due date of filing of return of income.
Therefore, provisions of section 10, section 10A, section 12A, section 32AB, section 33AB, section 33ABA, section 35D, section 35E, section 44AB, section 44DA, section 50B, section 80-IA, section 80-IB, section 80JJAA, section 92F, section 115JB, section 115JC and section 115VW of the Act are proposed to be amended accordingly.
Further, the due date for filing return of income under sub-section (1) of section 139 is proposed to be amended by:-
(i) providing 31st October of the assessment year (as against 30th September) as the due date for an assessee referred to in clause (a) of Explanation 2 of sub-section (1) of Section 139 of the Act;
(ii) removing the distinction between a working and a non-working partner of a firm with respect to the due date as mentioned in sub-clause (iii) of clause (a) of Explanation 2 of sub-section (1) of Section 139 of the Act.
These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-21 and subsequent assessment years.
- Bank deposit insurance to be paid in around 90 days – DICGC Bill 2021
- New functionality on Annual Aggregate Turnover (AATO) deployed on GST Portal
- Income-tax (20th Amendment) Rules 2021
- Data retrieved from Pen-drive & admission not substantive evidentiary value to make additions
- Deferred ICAI Code of Ethics 2019 to be applicable from 1st April 2022