Compulsory audit of accounts

Every person carrying on business shall, if his total sales, turnover or gross receipts in business exceed Rs. 40,00,000 in any previous year, get his accounts of such previous year audited by a Chartered 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.

• Specified date is 30th of November of the relevant assessment year in the case of companies and 31st of October of the relevant assessment year in the case of other assessees.
• In the case of a person carrying on a profession, the provisions for compulsory audit are applicable if his gross receipts in profession exceed Rs. 10,00,000 in any previous year.
• Similarly, w.e.f. April 1st 1998 a person carrying on a business covered by the provisions of presumptive taxation as under sections 44AD and 44AE or 40AF shall have to get his accounts of such previous year audited by a Chartered Accountant on or before the specified date if his income from the said business is declared to be lower than the deemed profits and gains computed under the above relevant sections .