Section 44AB of Income Tax Act "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 one crore rupees in any previous year 89[***]:
90[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 "five crore rupees" had been substituted;
or]
(b) carrying on profession shall, if his gross receipts in
profession exceed fifty lakh rupees in any 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 section 44AE 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 previous year; or
(d) carrying on the profession shall, if the profits and
gains from the profession are deemed to be the profits and
gains of such person 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 profession and his income
exceeds the maximum amount which is not chargeable to
income-tax in any previous year; or
(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,
get his accounts of such previous year audited by an
accountant before the specified date and 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 :
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:
Provided further that this section shall not apply to the
person, who derives income of the nature referred to in
section 44B or 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 :
Provided also that in a case where such person is required
by or under any other law to get his accounts audited, 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 furnishes by that date the report of the audit as
required under such other law and a further report 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;
(ii) "specified date", in relation to the accounts of the
assessee of the previous year relevant to an assessment
year, means 91[date one month prior to] the due date for
furnishing the return of income under sub-section (1) of
section 139.