Who should get a Tax Audit Done?
Everything related to the income tax audit is given in Section 44 AD of the Income Tax Act, 1961. The section 44 AB dictates the eligibility for the tax audit. This sections basically dictates that the following categories of taxpayers need to get a tax audit report.
Businesses:Businesses operating in the country have to obtain an audit report once their total sales turnover or gross receipts in the business activities start crossing the ₹ 1 crore mark in any previous years. The income tax labels a ‘business’ as an economic activity that is being carried with the objective of earning profits.
Professionals whos gross annual receipts extend over ₹ 50 lakh in total, in any of the previous years, they need to get tax audit performed on their business activities. The Section 6F of the Income Tax Rules, 1962 specifies who all fall under the category of professionals who might need a tax audit.
- Authorized Representatives