Accounts and Audit

Section

Particulars

Threshold

44AA

Compulsory maintenance of prescribed books of account - Specified Profession

(Subject to certain conditions and circumstances)

Persons carrying on specified profession and their gross receipts exceed Rs. 1,50,000 in all the three years immediately preceding the previous year

44AA

Compulsory maintenance of books of account - Other business or profession

(Subject to certain conditions and circumstances)

1) If total sales, turnover or gross receipts exceeds Rs. 25,00,000 in any one of the three years immediately preceding the previous year; or

2) If income from business or profession exceeds Rs. 2,50,000 in any one of the three years immediately preceding the previous year

44AB

Compulsory Audit of books of accounts (Subject to certain conditions and circumstances)

1) If total sales, turnover or gross receipts exceeds Rs. 2 Crore in any previous year, in case of business; or

Note:

a) Provided that this section is not applicable to the person, who opts for presumptive taxation Scheme under Section 44AD and his total sales or turnover does not exceed Rs 2 crores.

b) Threshold limit of Rs. 1 crore shall be increased to Rs. 10 crore in case where the cash receipt and payment made during the year does not exceed 5% of total receipt or payment the business

2) If gross receipts exceeds Rs. 50 Lakhs in any previous year, in case of profession.