India - Income Tax Act 2010 - Saarc

1.287 CH. IV - COMPUTATION OF BUSINESS INCOME S. 44AB72[Audit of accounts of certain persons carrying on business or profession.7344AB. 74 Every person,—(a) carrying on business shall, if his total sales, turnover or gross receipts,as the case may be, in business exceed or exceeds 74a [forty lakh rupees]in any previous year 75 [***]; or(b) carrying on profession shall, if his gross receipts in profession exceed75a[ten lakh rupees] in any 76 [previous year; or(c) carrying on the business shall, if the profits and gains from thebusiness are deemed to be the profits and gains of such person under77[section 44AD or section 44AE or section 44AF] 78 [or section 44BB orsection 44BBB], as the case may be, and he has claimed his incometo be lower than the profits or gains so deemed to be the profits andgains of his business, as the case may be, in any 79 [previous year,]]80[***]The following clause (d) shall be inserted after clause (c) of section44AB by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2011 :(d) carrying on the business shall, if the profits and gains from thebusiness are deemed to be the profits and gains of such person undersection 44AD and he has claimed such income to be lower than theprofits and gains so deemed to be the profits and gains of his businessand his income exceeds the maximum amount which is not chargeableto income-tax in any previous year,get his accounts of such previous year 81 [***] audited by an accountant beforethe specified date and 82 [furnish by] that date the report of such audit in the72. Inserted by the Finance Act, 1984, w.e.f. 1-4-1985.73. See also Circular No. 452, dated 17-3-1986 and Circular No. 561, dated 22-5-1990. Fordetails, see Taxmann’s Master Guide to Income-tax Act.For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.74. See rule 6G. Prescribed audit reports are as under:—(i) Audit report in case of person who carries on business or profession and who isrequired to get his accounts audited under any other law: Form 3CA(ii) Audit report in case of person who carries on business or profession and who is notrequired to get his accounts audited under any other law: Form 3CB(iii) Prescribed particulars in case of (i) and (ii) above: Form 3CD.74a. Words “sixty lakh rupees” shall be substituted for “forty lakh rupees” by the Finance Act,2010, w.e.f. 1-4-2011.75. Words “or years relevant to the assessment year commencing on the first day of April,1985, or any subsequent assessment year” omitted by the Finance Act, 1988, w.e.f.1-4-1989.75a. Words “fifteen lakh rupees” shall be substituted for “ten lakh rupees” by the Finance Act,2010, w.e.f. 1-4-2011.76. Substituted for “previous year,” by the Finance Act, 1997, w.e.f. 1-4-1998.77. Words “section 44AE” shall be substituted for “section 44AD or section 44AE or section44AF” by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2011.78. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004.79. Words “previous year; or” shall be substituted for “previous year,” by the Finance (No. 2)Act, 2009, w.e.f. 1-4-2011.80. Words “or years relevant to the assessment year commencing on the first day of April,1985, or any subsequent assessment year,” omitted by the Finance Act, 1988, w.e.f.1-4-1989.81. Words “or years” omitted, ibid.82. Substituted for “obtain before” by the Finance Act, 1995, w.e.f. 1-7-1995.