Tax audit turnover threshold limit increased to 5 crores Rupees for business (Amendment of section 44AB of the Act).
(A) in clause (a),––
(i) the word “or” occurring at the end shall be omitted;
(ii) the following proviso shall be inserted, namely:––
Tax audit turnover threshold limit increased to 5 crores rupees for business.
‘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 (5%) 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 (5%) 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) in the Explanation, in clause (ii), after the word “means”, the words “date one month prior to” shall be inserted
Due date of furnishing report made 31st October (Amendment of section 139 of the Act.)
In section 139 of the Income-tax Act 1961, in sub-section (1), in Explanation 2, in clause (a),––
(a) in sub-clause (iii), the word “working” shall be omitted; – Removing the distinction between partner a working and a non-working partner
(b) in the long line, for the figures, letters and words “30th day of September”, the figures, letters and words “31st day of October” shall be substituted, Providing 31st day October of the assessment year as against 30th Day September.
Chart of Change of Due date of Tax Audit and (Audited)Income Tax Return :
|Due date of Income Tax Return of Audited Tax Payers (Section 44AB, 44ADA, 115JB of Income tax etc)||31st Day October|
|Due date of Tax Audit||One month prior to due date of Income Tax Return Filing i.e.
30th Day September
These Income tax amendments will take effect from 1st day of April, 2020 and will, accordingly, apply in relation to the assessment year 2020-21 and subsequent assessment years
Note:- TDS/TCS Deduction limit
The amendment relating to extending threshold for getting books of accounts audited will have consequential effect on Tax Deducted at Source/ Tax Collected at Source (TDS/TCS) provisions contained in sections 194A, Section 194C, Section 194H, Section 194I, Section 194J and Section 206C of income tax act as these provisions fasten liability of TDS/TCS on certain categories of person, if the gross receipt or gross turnover from the business or profession carried on by them exceed the monetary limit specified in clause (a) or clause (b) of section 44AB of this act.
Therefore, it is proposed to amend these sections of Income tax act so that reference to the monetary limit specified in clause (a) or clause (b) of section 44AB of this Act is substituted with (1 Crore) one crore rupees in case of the business or fifty lakh (50 Lakh) rupees in case of the profession, as the case may be.
These amendments of this bill will take effect from 1st April, 2020.
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