Taxpayer carrying on business
Every tax payer whose total income exceeds Rs 1 crore and does not opt for presumptive taxation needs to maintain complete set of books of accounts and get it audited by chartered accountant
From FY 2019-20 turnover limit has been tweaked as follows
If 95% of aggregate payment / receipts executed by way of electronic mode then turnover limit is extended to Rs 5 crore /-
Taxpayer carrying on eligible profession
If gross receipts exceed Rs 50 lacs in Financial year then he needs to get his books of accounts audited by chartered accountant
What is the due date by which a taxpayer should get his accounts audited?
Taxpayer should get his accounts audited and should obtain the audit report on or before 30th September of the relevant assessment year, e.g., Tax audit report for the financial year 2019-20 corresponding to the assessment year 2020-21 should be obtained on or before 30th September, 2020.
Penalty for not complying with Tax audit provision
The penalty shall be lower of the following amounts:
(a) 0.5% of the total sales, turnover or gross receipts, as the case may be, in business, or of the gross receipts in profession, in such year or years.
(b) Rs. 1,50,000.