Section 44AB of ITA, 1961 : Section 44Ab: Audit Of Accounts Of Certain Persons Carrying On Business Or Profession

Explanation using Example

For example, consider Mr. Sharma, who owns a garment manufacturing business. In the financial year 2022-2023, his total sales amount to INR 1.2 crores. According to Section 44AB of the Income-tax Act, 1961, since his sales exceed INR 1 crore, he is required to get his accounts audited by a chartered accountant. He must ensure that the audit is completed and the audit report is furnished by the specified date, which is typically the due date for filing the income tax return. This helps in ensuring that his business's financial statements are accurately presented and taxes are correctly calculated.