Audit of accounts of certain persons carrying on business or profession.

Every person,—

1. (a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds 2[one crore rupees] in any previous year 3***; or
2. (b) carrying on profession shall, if his gross receipts in profession exceed 4[fifty lakh rupees] in any 5[previous year; or
3. (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 6[section 44AE] 7[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 8[previous year; or] 3***] 9[(d) carrying on the 10[profession] shall, if the profits and gains from the 10[profession] are deemed to be the profits and gains of such person 11[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 10[profession] and his income exceeds the maximum amount which is not chargeable to income-tax in any 12[previous year; or]] 13[(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 14[such previous year] audited by an accountant before the specified date and 15[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: 16[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:] 17[18[Provided further that] this section shall not apply to the person, who derives income of the nature referred to in 19*** section 44B or 20[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: 3. The words and figures “or years relevant to the assessment year commencing on the first day of April, 1985, or any subsequent assessment year” omitted by Act 26 of 1988, s. 14 (w.e.f. 1-4-1989). 19. The words, figures and letters “section 44AC or” omitted by Act 22 of 1995, s. 13 (w.e.f. 1-7-1995). 1[Provided also] that] in a case where such person is required by or under any other law to get his accounts audited 2***, 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 3[furnishes by] that date the report of the audit as required under such other law and a further report 4[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; 5[(ii) “specified date”, in relation to the accounts of the assessee of the previous year relevant to an assessment year, means 6[the due date for furnishing the return of income under sub-section (1) of section 139].]] 44AC. [Special provision for computing profits and gains from the business of trading in certain goods.] Omitted by the Finance Act, 1992 (18 of 1992), s. 21 ( w.e.f. 1-4-1993).

¹ Ins. by Act 21 of 1984, s. 11 (w.e.f. 1-4-1985).

² Subs. by Act 23 of 2012, s. 13, for “sixty lakh rupees” (w.e.f. 1-4-2013).

⁴ Subs. by Act 28 of 2016, s. 25, for “twenty-five lakh rupees” (w.e.f. 1-4-2017).

⁵ Subs. by Act 26 of 1997, s. 11, for “previous year” (w.e.f. 1-4-1998).

⁶ Subs. by Act 33 of 2009, s. 19, for “section 44AD or section 44AE or section 44AF” (w.e.f. 1-4-2011).

⁷ Ins. by Act 32 of 2003, s. 23 (w.e.f. 1-4-2004).

⁸ Subs. by Act 33 of 2009, s. 19, for “previous year,” (w.e.f. 1-4-2011).

⁹ Ins. by s. 19, ibid. (w.e.f. 1-4-2011).

¹⁰ Subs. by Act 28 of 2016, s. 25, for “Business” (w.e.f. 1-4-2017).

¹¹ Subs. by s. 25, ibid., for “under section 44AD” (w.e.f. 1-4-2017).

¹² Subs. by s. 25, ibid., for “previous year” (w.e.f. 1-4-2017).

¹³ Ins. by s. 25, ibid. (w.e.f. 1-4-2017).

¹⁴ Subs. by Act 26 of 1988, s. 14, for “such previous year or years” (w.e.f. 1-4-1989).

¹⁵ Subs. by Act 22 of 1995, s. 13, for “obtain before” (w.e.f. 1-7-1995).

¹⁶ Ins. by Act 7 of 2017, s. 20 (w.e.f. 1-4-2017).

¹⁷ Subs. by Act 18 of 1992, s. 20, for “Provided that” (w.e.f. 1-4-1985).

¹⁸ Subs. by Act 7 of 2017, s. 20, for “Provided that” (w.e.f. 1-4-2017).

²⁰ Subs. by Act 32 of 2003, s. 23, for “section 44BB or section 44BBA or section 44BBB” (w.e.f. 1-4-2004).