TaxAudits of TechnicalConsultants
The limit for taxaudits of technicalconsultants in India is Rs. 50 lakhs in total gross receipts during the financial year. This is under Section 44AB of the Income Tax Act, 1961.
If the total gross receipts of a technical consultant exceed Rs. 50 lakhs, then they are required to get their accounts audited by a practicing chartered accountant. The audit report must be filed with the Income Tax Department within 30 days of the completion of the audit.
However, there are some exceptions to this rule. For example, technical consultants who are engaged in the business of providing consultancy services to a single client and the total amount of such services does not exceed Rs. 50 lakhs in a financial year are not required to get their accounts audited.
Technical consultants who are subject to tax audit must maintain their books of accounts and other relevant documents for a period of 8 years from the end of the financial year to which they relate.
To visit: https://www.incometax.gov.in
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