Section 44AB - Audit of accounts of certain persons carrying on business or profession - Income-tax Act, 1961

1 [Audit of accounts of certain persons carrying on business or profession. 44AB. 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 19 [ one crore rupees ] in any previous year 2 [ **** ]; 29 [****] 30 [Provided that in the case of a person whose (a) 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 (b) 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, this clause shall have effect as if for the words one crore rupees , the words 32 [ ten crore rupees ] had been substituted; or ] 33 [Provided further that for the purposes of this clause, the payment or receipt, as the case may be, by a cheque drawn on a bank or by a bank draft, which is not account payee, shall be deemed to be the payment or receipt, as the case may be, in cash. ] ( b ) carrying on profession shall, if his gross receipts in profession exceed 21 [ fifty lakh rupees ] in any 3 [ previous year; or ( c ) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under 16 [ section 44AE ] 4 [ or section 44BB or section 44BBB ], as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any 17 [ previous year; or ] , ] 18 [ (d) carrying on the 22 [ profession ] shall, if the profits and gains from the 22 [ profession ] are deemed to be the profits and gains of such person 23 [ under section 44ADA ] and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his 22 [ profession ] and his income exceeds the maximum amount which is not chargeable to income-tax in any 24 [ previous year; or ]] 25 [ (e) carrying on the business shall, if the provisions of sub-section (4) of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year, ] 5 [ **** ] get his accounts of such previous year 6 [* *** ] audited by an accountant before the specified date and 7 [ furnish by ] that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed : 34 [Provided that this section shall not apply to a person, who declares profits and gains for the previous year in accordance with the provisions of sub-section (1) of section 44AD or sub-section (1) of section 44ADA: ] 8 [ 27 [Provided further that ] this section shall not apply to the person, who derives income of the nature referred to in 9 [ **** ] section 44B or 10 [ section 44BBA ], on and from the 1st day of April, 1985 or, as the case may be, the date on which the relevant section came into force, whichever is later : 28 [Provided also] that ] in a case where such person is required by or under any other law to get his accounts audited 11 [ **** ] , it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and 12 [ furnishes by ] that date the report of the audit as required under such other law and a further report 13 [ by an accountant ] in the form prescribed under this section. Explanation .-For the purposes of this section,- (i) accountant shall have the same meaning as in the Explanation below sub-section (2) of section 288; 14 [ (ii) specified date , in relation to the accounts of the assessee of the previous year relevant to an assessment year, means 31 [ date one month prior to ] the 15 [ the due date for furnishing the return of income under sub-section (1) of section 139. ]] ************** NOTES:- 1. Inserted vide Section 11 of the Finance Act, 1984 w.e.f. 01-04-1985 2. Omitted vide Section 14 of the Finance Act, 1988 w.e.f. 01-04-1989 before it was read as, or years relevant to the assessment year commencing on the first day of April, 1985, or any subsequent assessment year 3. Substituted vide Section 11 of the Finance Act, 1997 w.e.f. 01-04-1998 before it was read as, previous year, 4. Inserted vide Section 23 of the Finance Act, 2003 w.e.f. 01-04-2004 5. Omitted vide Section 14 of the Finance Act, 1988 w.e.f. 01-04-1989 before it was read as, or years relevant to the assessment year commencing on the first day of April, 1985, or any subsequent assessment year, 6. Omitted vide Section 14 of the Finance Act, 1988 w.e.f. 01-04-1989 before it was read as, or years 7. Substituted vide Section 13 of the Finance Act, 1995 w.e.f. 01-07-1995 before it was read as, obtain before 8. Substituted vide Section 20 of the Finance Act, 1992 w.e.f. 01-04-1985 before it was read as, Provided that 9. Omitted vide Section 13 of the Finance Act, 1995 w.e.f. 01-07-1995 before it was read as, section 44AC or 10. Substituted vide Section 23 of the Finance Act, 2003 w.e.f. 01-04-2004 before it was read as, section 44BB or section 44BBA or section 44BBB 11. Omitted vide Section 13 of the Finance Act, 1985 w.e.f. 01-04-1985 before it was read as, by an accountant 12. Substituted vide Section 13 of the Finance Act, 1995 w.e.f. 01-07-1995 before it was read as, obtains before 13. Inserted vide Section 28 of the Finance Act, 2001 w.e.f. 01-04-2001 14. Substituted vide Section 28 of the Finance Act, 2001 w.e.f. 01-04-2001 before it was read as, (ii) specified date , in relation to the accounts of the previous year relevant to an assessment year means,- (a) where the assessee is a company, the 30th day of November of the assessment year; (b) in any other case, the 31st day of October of the assessment year. Earlier , substituted by the Section 14 of the Finance Act, 1988 w.e.f. 01-04-1989 before it was read as, (ii) specified date , in relation to the accounts of the previous year or years relevant to an assessment year, means the date of the expiry of four months from the end of the previous year or, where there is more than one previous year, from the end of the previous year which expired last before the commencement of the assessment year, or the 30th day of June of the assessment year, whichever is later. And was Amended vide Section 50 of the Finance Act, 1994 w.e.f. 01-04-1994 15. Substituted vide Section 13 of the Finance Act, 2012 w.e.f. 01-04-2013 before it was read as, the 30th day of September of the assessment year Earlier , Substituted vide Section 13 of the Finance Act, 2008 w.e.f. 01-04-2008 before it was read as, 31st day of October 16. Substituted vide Section 19 of the Finance (No. 2) Act, 2009 w.e.f. 01-04-2011 before it was read as, section 44AD or section 44AE or section 44AF 17. Substituted vide Section 19 of the Finance (No. 2) Act, 2009 w.e.f. 01-04-2011 before it was read as, previous year 18. Inserted vide Section 19 of the Finance (No. 2) Act, 2009 w.e.f. 01-04-2011 19. Substituted vide Section 13 of the Finance Act, 2012 w.e.f. 01-04-2013 before it was read as, sixty lakh rupees Earlier , Substituted vide Section 14 of the Finance Act, 2010 w.e.f. 01-04-2011 before it was read as, forty lakh rupees 20. Substituted vide Section 13 of the Finance Act, 2012 w.e.f. 01-04-2013 before it was read as, fifteen lakh rupees Earlier , Substituted vide Section 14 of the Finance Act, 2010 w.e.f. 01-04-2011 before it was read as, ten lakh rupees 21. Substituted vide Section 25 of the Finance Act, 2016 w.e.f. 01-04-2017 before it was read as, 20 [ twenty-five lakh rupees ] 22. Substituted vide Section 25 of the Finance Act, 2016 w.e.f. 01-04-2017 before it was read as, business 23. Substituted vide Section 25 of the Finance Act, 2016 w.e.f. 01-04-2017 before it was read as, under section 44AD 24. Substituted vide Section 25 of the Finance Act, 2016 w.e.f. 01-04-2017 before it was read as, previous year 25. Inserted vide Section 25 of the Finance Act, 2016 w.e.f. 01-04-2017 26. Inserted vide Section 20 of the Finance Act, 2017 w.e.f. 01-04-2018 27. Substituted vide Section 20 of the Finance Act, 2017 w.e.f. 01-04-2018 before it was read as, Provided that 28. Substituted vide Section 20 of the Finance Act, 2017 w.e.f. 01-04-2018 before it was read as, Provided further 29. Omitted vide Section 23 of the Finance Act, 2020 w.e.f. 01-04-2020 before it was read as, or 30. Inserted vide Section 23 of the Finance Act, 2020 w.e.f. 01-04-2020 31. Inserted vide Section 23 of the Finance Act, 2020 w.e.f. 01-04-2020 32. Substituted vide Section 13 of the Finance Act, 2021 w.e.f. 01-04-2021 before it was read as, five crore rupees 33. Inserted vide Section 13 of the Finance Act, 2021 w.e.f. 01-04-2021 34. Substituted vide Section 15 of the Finance Act, 2023 w.e.f. 01-04-2024 before it was read as, 26 [Provided that this section shall not apply to the person, who declares profits and gains for the previous year in accordance with the provisions of sub-section (1) of section 44AD and his total sales, turnover or gross receipts, as the case may be, in business does not exceed two crore rupees in such previous year: ]