Balance sheet for freelancers
The threshold limit of balance sheet for Freelancers in India, in terms of the balance sheet, refers to the maximum turnover or gross receipts that a freelancer can have before being required to undergo tax audit under Section 44AB of the Income Tax Act.
This limit is subject to change and is dependent on the financial year in question.
The threshold limit for tax audit for freelancers is Rs. 1 crore.
This means that if a freelancer’s turnover or gross receipts exceed Rs. 1 crore in a financial year, they are required to get their accounts audited by a Chartered Accountant, and the audit report must be furnished along with their income tax return.
This audit aims to ensure that the freelancer’s financial records are accurate and comply with the tax regulations. It also helps prevent tax evasion and maintains transparency in financial transactions.
To visit: https://www.incometax.gov.in
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