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If income is below the maximum amount which is not chargeable to tax is liable for tax audit
The obligation to get accounts audited is not linked to having income exceeding the maximum amount not chargeable to tax (e.g. Rs. 1,50,000/Rs. 1,85,000/Rs. 2,25,000 (as the case may be) for the financial year 2008-09). Therefore, it appears that even a person who is not required to file his income-tax return under section 139 (because his income does not exceed maximum chargeable to tax) will be required to get his accounts audited and obtain the tax audit report by the specified date if the turnover or gross receipts from business exceeds Rs. 40 lakhs for that previous year/if gross receipts from profession exceeds Rs. 10 lakhs for that previous year/assessee who being eligible to opt for presumptive taxation under section 44AD/44AE/44AF (non-operative with effect from assessment year 2011-12)/44BB/44BBB does not opt for such presumptive taxation. [This is the view that ICAI has taken in para 6.2 of the Guidance Note on Tax Audit.]
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