The Direct Tax Code has changed the rule for getting accounts audited and tax audited. The good news for everyone , except the Chartered Accountants whose profession will be effected , is that the limit i.e gross receipts or turnover , exceeding which the income tax law requires tax audit have been incresed as under :
- In case of profession gross receipts in a financial year should exceed Rs 25 lakhs
- In case of any business, gross receipts in a financial year should exceed Rs 1 Crore.
88. (1) Every person, who is required to keep and maintain books of account under section 87 shall get his accounts for the financial year audited—(a) where the person is carrying on any profession, the gross receipts of the profession exceed twenty-five lakh rupees in the financial year;(b) where the person is carrying on any business, the total turnover or gross receipts, as the case may be, of the business exceed one crore rupees in the financial year.