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Compulsory
audit of accounts
Every person
carrying on business shall, if his total sales, turnover or gross receipts
in business exceed Rs. 40,00,000 in any previous year, get his accounts
of such previous year audited by a Chartered 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.
- Specified
date is 30th of November of the relevant assessment year in the case
of companies and 31st of October of the relevant assessment year in
the case of other assessees.
- In the
case of a person carrying on a profession, the provisions for compulsory
audit are applicable if his gross receipts in profession exceed Rs.
10,00,000 in any previous year.
- Similarly,
w.e.f. April 1st 1998 a person carrying on a business covered by the
provisions of presumptive taxation as under sections 44AD and 44AE or
40AF shall have to get his accounts of such previous year audited by
a Chartered Accountant on or before the specified date if his income
from the said business is declared to be lower than the deemed profits
and gains computed under the above relevant sections .
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