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Tax audit threshold under Section 44AB (general):
ARs. 2 crore / Rs. 75 lakhs (per relevant Section)
BRs. 1 crore business / Rs. 50 lakhs profession
CRs. 5 crore / Rs. 50 lakhs
DRs. 50 lakhs uniformly
Answer & Solution
Correct answer: B. Rs. 1 crore business / Rs. 50 lakhs profession
1. Section 44AB mandates tax audit for business with turnover > Rs. 1 crore, profession > Rs. 50 lakhs gross receipts.
2. Business with cash receipts/payments not exceeding 5%: limit raised to Rs. 10 crore.
3. Tax audit report due by 30 September of the AY.
_Source: ICAI BoS CA Final Paper 7, Ch 3 "Profits and Gains of Business or Profession"_
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