Tax Audit u/s 44AB limit increased upto 5 Cr. w.e.f. FY 2020-21

Tax Audit U/s 44AB limit has been proposed to increase up to Rs. 5Cr. from FY 2020-21 for MSME sector in Union Budget 2020 but several conditions apply.

Limits of Tax Audit (Sec. 44AB) under Income Tax Act:

Currently the account of an assessee need to be audited "if his annual gross turnover/receipts in Business exceeds Rs. 1 Cr." or "if his annual gross receipts in Profession exceeds Rs. 50 Lakh."

Amendment of Sec 44AB in Budget 2020, Apart from the current provision, a new provision also inserted in Sec. 44AB that has been proposed to increase the tax audit limit from '1 crore' to '5 crore' if a person's aggregate of all amounts received including amount received for sales, turnover or gross receipts during the previous year, in cash, does not exceed 5% of the said amount and aggregate of all payments made including amount incurred for expenditure, in cash, during the previous year does not exceed 5% of the said payment.

Click here to read THE FINANCE BILL, 2020

Whether this audit limit increased (Rs. 5 cr.) for only MSMEs.

The increased audit limit is applicable to small retailers, traders and shopkeepers who earn business income. But the increased audit limit is applicable to those whose sales/ receipts in cash and purchases/ payments in cash are less than 5%, otherwise the limit will remain Rs. 1 Cr.

Change in Due Dates of Audit and Income Tax Return filing:

According to Budget 2020, following are proposed, such as,

Due date of Income Tax Return of Audited Tax payers (Sec. 44AB, 44ADA, 115JB etc.): 31st October.
Due date to submit Tax Audit Report: One month prior to income tax return filing i.e. 30th September

You can find more articles on at https://thetaxsupport.com/blog/

Comments

4 Quick Tips to Stop Overspending..!!

The Tax Support Y ou may are during a situation where you've planned to save lots of money rather than overspending it. you'll have planned to shop for only what's necessary, stop eating out and control the urge to online shopping. Unfortunately, at the top of the month, you've ended up spending quite what you've thought you'd. Stopping overspending isn't as easy because it seems to be and if you actually want to save lots of money, read on to understand four quick and straightforward tips and tricks. Why shouldn't you overspend? In spite of the very fact that overspending may be a 'subjective' term, most folks tend to spend quite what we should always. Though it's going to not be easy to believe that you're overspending, the sooner you realize the very fact , the better it gets in controlling your urge to spend more. If you're one among those that purchase items because they're hooked in to those, ask yourself whether ...

How to know in which income tax slab you fall?

As your income level increases, income at different levels will be taxed at different rates which are called the slab rates. To know how much is your tax liability in FY 2019-20, it is very important to know which income tax slab you fall in. While doing your tax planning for FY2019-20, it is very important to know which tax slab your income falls in. The slab rate in which your income will fall is the rate at which your income will be taxed. As your income level increases, income at different levels will be taxed at different rates which are called the slab rates. *Income tax slabs applicable to the resident individuals below the age of 60 years for FY2019-20. Surcharge is applicable from income above Rs 50 lacs. Health and Education cess at rate of 4% will be added to the income tax payable in all cases. Rebate of Rs 12,500 is available for an individual having net taxable income of up to Rs 5 lacs under section 87A. Suppose your gross total income is Rs 15 lacs in FY...

All about the New Income Tax Slabs and Rates

For the first time ever, the Union budget 2020 presented by the Finance Minister came up with two tax slabs and rates and gave an option to the taxpayers to choose between the two from the financial year 2020-21. While retaining the existing three slab tax rates, it introduced a new six-slab tax rate. On the budget day, as news started trickling in on the tax front, the initial euphoria evaporated and gave rise to confusion and disappointment. The confusion was reinforced when I got a call from one of my colleagues recently, asking me which regime was beneficial as it was the time for the annual investment declaration in the organisation. Old or New? Taxes, deductions, exemptions and compliances are by themselves something of a rocket science for the average taxpayer. The new rules have only increase the confusion for the income tax taxpayers. So let us try to figure out which tax regime is better. The table (for taxpayers who are less than 60 years of age) compares th...

Vipin Sanger

Search This Blog