Section 44AB Income Tax Act 1961
( Section 44AB Income Tax Act 1961 as Amended by Finance Act 2018)
18[Audit of accounts of certain persons carrying on business or profession.
19 44AB. 20Every person,—
| (a) | carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds 22[one crore rupees] in any previous year 23[***]; or | |
| (b) | carrying on profession shall, if his gross receipts in profession exceed 24[25[fifty] lakh rupees] in any 26[previous year; or | |
| (c) | carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under 27[section44AE ] 28[or section 44BB or section 44BBB], as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any 29[previous year; or]] 30[***] | |
| 31[(d) | carrying on the 32[profession]shall, if the profits and gains from the 32[profession]are deemed to be the profits and gains of such person under 33[section 44ADA] and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his 32[profession]and his income exceeds the maximum amount which is not chargeable to income-tax in any 34[previous year; or]] | |
| 35[(e) | carrying on the business shall, if the provisions of sub-section (4) of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,] |
get his accounts of such previous year 36[***] audited by an accountant before the specified date and 38[furnish by] that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed :
38a [Provided that this section shall not apply to the person, who declares profits and gains for the previous year in accordance with the provisions of sub-section (1) of section 44AD and his total sales, turnover or gross receipts, as the case may be, in business does not exceed two crore rupees in such previous year: ]
39[Provided39a[further] that this section shall not apply to the person, who derives income of the nature referred to in 40[***] section 44B or 41[section44BBA], on and from the 1st day of April, 1985 or, as the case may be, the date on which the relevant section came into force, whichever is later :
Provided 41a [also] that] in a case where such person is required by or under any other law to get his accounts audited 42[***], it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and 44[furnishes by] that date the report of the audit as required under such other law and a further report 45[by an accountant] in the form prescribed under this section.
Explanation.—For the purposes of this section,—
| (i) | “accountant” shall have the same meaning as in the Explanation below sub-section (2) of section 288; | |
| 46[(ii) | “specified date”, in relation to the accounts of the assessee of the previous year relevant to an assessment year, means 47[the due date for furnishing the return of income under sub-section (1) of section 139].]] |
46. Substituted by the Finance Act, 2001, w.e.f. 1-4-2001. Prior to its substitution, clause (ii), as substituted by the Finance Act, 1988, w.e.f. 1-4-1989 and later on amended by the Finance Act, 1994, w.e.f. 1-4-1994, read as under :
| ‘(ii) | “specified date”, in relation to the accounts of the previous year relevant to an assessment year means,— |
| (a) | where the assessee is a company, the 30th day of November of the assessment year; | |
| (b) | in any other case, the 31st day of October of the assessment year.’ |
47. Substituted for “the 30th day of September of the assessment year” by the Finance Act, 2012, w.e.f. 1-4-2012. Earlier, the words “30th day of September” were substituted for “31st day of October” by the Finance Act, 2008, w.e.f. 1-4-2008.
Related Book on Income tax
