Every assessee who fulfils either of the following two conditions, shall have to get his accounts audited. The audit must be got done before the specified date and copy of the report duly signed and verified in prescribed manner must be furnished before such specified date.
1. If a person is carrying on business—his total sales, turnover or gross receipts in business exceed 60 laths in a previous year. [w.e.f. 1-4-2013 ‘ 1 crore ]
2. If a person is carrying on profession—his gross receipts in profession exceed 15 Lath rupees in a previous year. [w.e.f. 1-4-2013 25 lakhsl
3. For persons covered under section 44AE or 44BB or Section 44BBB. With effect from assessment year 1998-99 audit of accounts shall be compulsory for those persons also who are covered u/s 44AD (Business of civil contractor or supply of labour), u/s 44AE (Business of carriage of goods) and u/s 44AE (Retail Business) if they claim that their profits are lower than the profits computed under the aforesaid sections.
In case the accounts of a person are being audited under the provisions of any other laws or under any other provision of this Act, the report so obtained will be sufficient for this purpose.
Specified Date is the date by which the person is required to file return of his income as prescribed u/s 139.
The provisions of section 44AB shall not be applicable on such persons who derive incomes mentioned under section 44 B, 44 BB, 44 BBA or 44 BBB on and from 1-4-85 or as the case be, the date on which relevant section came into force.
This amendment has been made by the Finance Act 1992 with retro-spective effect from 1-4-85.