Under section 44AB of the Act, every person carrying on business is required to get his accounts audited, if his total sales, turnover or gross receipts, in business exceed or exceeds one crore rupees in any previous year.
In case of a person carrying on the profession, he is required to get his accounts audited, if his gross receipt in profession exceeds, fifty lakh rupees in any previous year.
In order to reduce the compliance burden on small and medium enterprises, the threshold limit is increased for a person carrying on business from one crore rupees to five crore rupees in cases where,-
(i) the aggregate of all receipts in cash during the previous year does not exceed five per cent of such receipt; and
(ii) the aggregate of all payments in cash during the previous year does not exceed five per cent of such payment.