CRUX of Sec.44AB:-
In A/Y 16-17 There was the concept that Assesssee claiming less that 8% of income than he must do the Audit of accounts…but now the person who show there income less than 8%/6% in 44AD …in these cases person need not to go for audit until the limit of turnover not reaches the limit of 44AB which is 1 Crore in case of Business.
Note:-professionals are still under the old provisions and who will show income less than 50% and if his Taxable income exceeds the maximum amount not chargeable to tax than this person is required to go for audit.
To know and understand the same we have to understand the below:-
Audit of account required U/S 44AB:-
1.Every person carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds 1 crore rupees in any previous year; or
(b) carrying on profession shall, if his gross receipts in profession exceed 51[fifty] lakh rupees in any previous year; or
(c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AE or section 44BB or section 44BBB, as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any previous year; or
(d) carrying on the [profession] shall, if the profits and gains from the [profession] are deemed to be the profits and gains of such person under section 44ADA and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his profession and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year; or
(e) carrying on the business shall, if the provisions of sub-section (4) of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,
get his accounts of such previous year audited by an accountant before the specified date and furnish by that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed :
Provided that this section shall not apply to the person, who declares profits and gains for the previous year in accordance with the provisions of sub-section (1) of section 44AD and his total sales, turnover or gross receipts, as the case may be, in business does not exceed two crore rupees in such previous year:
Provided also that in a case where such person is required by or under any other law to get his accounts audited, it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and furnishes by that date the report of the audit as required under such other law and a further report by an accountant in the form prescribed under this section.
Explanation.—For the purposes of this section,—
(i) “accountant” shall have the same meaning as in the Explanation below sub-section (2) of section 288;
(ii) “specified date”, in relation to the accounts of the assessee of the previous year relevant to an assessment year, means the due date for furnishing the return of income under sub-section (1) of section 139.
Author is try to resolve the uncertainty through CRUX if you have any queries for same you may comment for such post.