Section 44AB provides for mandatory submission of an Audit report of the Business / Profession carried on by the taxpayer if the total receipts or turnover of business goes above the prescribed limit of Rs 1 Cr. (Cash Payments above 5%) /5 Cr. (Cash Payments below 5%) for Business and Rs 50 lakh for Profession in the previous year.
The taxpayer has to get his books of accounts audited by a practicing Chartered Accountant (CA) recognized by ICAI. Non-compliance to department tax audit compliances can severely add complications to the business or can levy a huge penalty on the taxpayer which can be as high as 0.5% of the total receipts or Rs 1.5 lakh.
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