Income Tax Audit: Who is required to get books of accounts audited u/s 44AB?

​​​As per section 44AB of Income Tax Act, the following persons are compulsorily required to get their accounts audited:

Business

A person carrying on business, if his total sales, turnover or gross receipts (as the case may be) in business for the year exceed or exceeds Rs. 1 crore. This provision is​ not applicable to the person, who opts for presumptive taxation scheme under section 44AD​ and his total sales or turnover doesn’t exceed Rs. 2 crores.

Note: The threshold limit, for a person carrying on business, is increased from Rs. 1 Crore to Rs. 10 crores in case when cash receipt and payment made during the year do not exceed 5% of total receipt or payment, as the case may be. In other words, more than 95% of business transactions should be done through banking channels.

Professionals

If gross receipts from the profession during the relevant previous year exceed Rs. 50 lakhs.

Business eligible for presumptive tax scheme under section 44AD

Resident Individuals or HUF are eligible to opt for the presumptive Taxation Scheme u/s 44AD

If the assessee’s income exceeds the maximum exemption limit and he has opted for the scheme in any of the last 5 previous years but does not opt for the same in the current year.

Resident Partnership Firm (Excluding LLP) are eligible to opt for the presumptive Taxation Scheme u/s 44AD

The taxpayer has opted for the scheme in any of the last 5 previous years but does not opt for the same in the current year.

Profession eligible for presumptive tax scheme under section 44ADA

Resident Individual or partnership firm (Excluding LLP) are eligible to opt for the presumptive Taxation Scheme u/s 44ADA

The taxpayer claims that profits from the profession are lower than the profits computed under section 44ADA, and the total income exceeds the maximum exemption limit.

Business eligible for presumptive tax scheme under section 44AE

Any Assessee engaged in plying, hiring or leasing of goods carriage is eligible to opt for the presumptive Taxation Scheme u/s 44AE

The taxpayer claims that the profits from the business are lower than the profit computed under section 44AE.

Business eligible for presumptive tax scheme under section 44BB

Non-resident assessee engaged in the exploration of mineral oil is eligible to opt for the presumptive Taxation Scheme u/s 44BB

The taxpayer claims that his profits from the business are lower than the profit computed under section 44BB.

Business eligible for presumptive tax scheme under section 44BBB

Foreign Co. engaged in civil construction is eligible to opt for the presumptive Taxation Scheme u/s 44BBB

The taxpayer claims that his profits from the business are lower than the profit computed under section 44BBB.