Amendment of section 44AB.
11. In section 44AB of the Income-tax Act, in clause (a), in the proviso, in long line, for the words “five crore rupees”, the words “ten crore rupees” shall be substituted.
Notes on Clauses:
Clause 11 of the Bill seeks to amend section 44AB of the Income-tax Act relating to audit of accounts of certain persons carrying on business or profession.
Clause (a) of the said section provides for audit of accounts for every person carrying on business, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees in any previous year. The proviso to the said clause provides that in the case of a person whose aggregate of all amounts received including amount received for sales, turnover or gross receipts during the previous year, in cash, does not exceed five per cent. of the said amount; and aggregate of all payments made including amount incurred for expenditure, in cash, during the previous year does not exceed five per cent. of the said payment, the said clause shall have effect as if for the words “one crore rupees” the words “five crore rupees” had been substituted.
It is proposed to amend the said proviso so as to increase the threshold from “five crore rupees” to “ten crore rupees”.
This amendment will take effect from 1st April, 2021 and will, accordingly, apply in relation to the assessment year 2021-2022 and subsequent assessment years.
