Persons carrying on business / profession are required to get their accounts audited, if their turnover exceeded the threshold limit of Rs. 40.00 lacs for business and Rs. 10.00 lacs for profession. These limits were fixed w.e.f A.Y. 85-86. For giving relief to the small assessees, it is proposed to raise the said threshold to Rs. 60.00 lacs for business and Rs. 15.00 lacs for professionals andaccordingly the assesses, who have their receipts below these thresholds will notbe required to get their accounts audited under section 44AB.
Penalties u/s. 271B for Tax Audit non-compliance
Presently, if the person fails to get his accounts audited then penalty of ½% of the total sales or Rs. 1,00,000, whichever is less, is imposed. Thereby, maximumpenalty of Rs. 1,00,000 is provided.
Now it is proposed to increase the ceiling to Rs. Rs. 1,50,000 in place of Rs.
1,00,000.