APPLICABILITY OF Section 44AB

Every person carrying on:

> Business having turnover > 1 Crore rupees

> Profession having gross receipts > 50 lakh rupees

> Profit as per 44AE OR 44BB OR 44BBB OR 44ADA > Actual profit

> Business to which sub-sec (4) of Sec 44AD applicable and income exceeds maximum amount not chargeable to tax.

Amendment to 44AB vide Finance Act 2020

Proviso is inserted

In order to reduce compliance burden on small and medium enterprises, it is proposed to increase the threshold limit for a person carrying on business from one crore rupees to five crore rupees in cases where,-

(i) Total cash receipts </= 5 % of total receipts; and

(ii) Total payments </= 5% of total payments.

Particulars Ram Ltd Ravi Ltd Raghu Ltd
Turnover 4,20,00,000 3,50,00,000 70,00,000
Cash receipts <5% <5% <5%
Cash Payments <5% <5% <5%
Audit Applicability
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