Statutory audit is applicable for interior designers
Whether or not statutory audit is applicable for interior designers depends on their gross receipts or turnover in a financial year.
The Income Tax Act, 1961, under Section 44AB, states that interior designers whose gross receipts or turnover exceeds Rs. 1 crore in a financial year are required to get their accounts audited by a chartered accountant.
To visit: https://www.incometax.gov.in
To determine whether statutory audit is applicable for interior designers, you can follow these steps:
- Calculate your gross receipts or turnover for the financial year. This includes all the income that you earn from your interior design business, such as fees from clients, sales of goods, and interest income.
- Compare your gross receipts or turnover to the statutory audit threshold of Rs. 1 crore. If your gross receipts or turnover is equal to or more than Rs. 1 crore, then you are required to get your accounts audited.
- If your gross receipts or turnover is less than Rs. 1 crore, then you are not required to get your accounts audited. However, you may still be audited by the Income Tax Department if they have reason to believe that you have evaded tax or have not complied with the Income Tax Act.
If you are unsure whether or not statutory audit is applicable for you, you should consult with a chartered accountant. They can help you to determine your obligations under the Income Tax Act and ensure that you are in compliance with the law.
Here are some additional points to keep in mind:
1.The statutory audit threshold is revised every year.
2.The statutory audit requirement applies to all interior designers, regardless of their legal structure.
3.The statutory audit requirement does not apply to interior designers who are not residents of India.
