The Finance Act, 2016 had increased the limit of
turnover for businessmen opting for presumptive
taxation scheme from Rs. 1 crore to
Rs. 2 crore. However, corresponding amendment was not made in the limit for audit of books of accounts (S. 44AB). This issue was mentioned in our Budget note for 2016 in para 19.2.4. It was clarified vide CBDT press release dated 20th June, 2016.
Now an eligible person opting for presumptive taxation scheme as per S. 44AD(1) shall not be required to get his accounts audited if the total turnover or gross receipts of does not exceed Rs. 2 crore.