Business man and Professionals can now celebrate as budget 2012 has increased the limit for audit of the books of accounts u/s 44AB and u/s 44AD (presumptive taxation scheme). The tax audit limit for turnover upto which tax audit is not required by business man and professionals has been enhanced to Rs. 1 Crore and Rs. 25 lakhs respectively.

Tax audit of Business man

From financial year 2012-13, any person carrying on business is required to get his books of accounts audited if the total sales, gross receipts or turnover in the previous year exceeds Rs. 1 crore. The audit limit has been increased from Rs. 60 lacs to Rs. 1 crore.

Tax audit of Professionals

From financial year 2012-13, any person carrying on profession is required to get his accounts audited, if the total sales, turnover or gross receipts in the previous year exceeds Rs.25 lakhs. Threshold limit for audit has been increased from Rs.15 lakhs to Rs.25 lakhs.

Increase in turnover u/s 44AD

For the purpose of Presumptive Taxation Scheme u/s 44AD, the threshold limit for total sales, gross receipts has also been increased. The limit has increased from Rs. 60 lakhs to Rs. 1 crore.

Effective Date

The amendments will be effective from 1^st April, 2013 and will be prevalent for the assessment year 2013-14 and subsequent assessment years.