Finance Bill 2012-13, has good news for all businesses and professions, as it is been proposed to raise the limit of total sales upto which a person can file tax return under section 44AD to 100 lakhs (1 crore) for businesses and 25 lakhs for professions. With this another amendment under section 44AB has been proposed, to increase the limit of turnover upto which tax audit is not required to 1 crore.
New Tax Provision As Per Finance Bill 2012-13
Under Section 44AB
With the intention to reduce the overhead of account auditing on small businesses and on professionals, it is been proposed to raise the threshold limit:-
- For Businesses :- Total sales, turnover or gross receipts, specified under section 44AB for getting accounts audited raised, from Rs 60 lakhs to Rs 1 crore.
- For Professions :- Total sales, turnover or gross receipts, specified under section 44AB for getting accounts audited raised, from Rs 15 lakhs to Rs 25 lakhs.
Under Section 44AD
It is proposed to raise the threshold limit of total sales, turnover or gross receipt for the purposes of presumptive taxation from Rs 60 lakhs to Rs 1 crore.
Existing Tax Provision Under Section 44AD
Under section 44AB, all tax payers who are carrying business are required to get their account audited if the total sales in the previous year is more than Rs. 60 lakhs. Likewise in case of tax payers carrying on profession are required to get their accounts audited if the total sales in the previous year were more than Rs 15 lakhs.
These amendments will be effective from 1st April, 2013 and will, accordingly, apply to the assessment year 2013-14 and subsequent assessment years.
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