In a relief to small businesses and professionals, the Union Budget has increased the audit compliance limit. At present, all businesses with a turnover exceeding Rs 40 lakh are required to have their accounts audited. A similar provision is also applicable to all professionals whose receipts exceed Rs 10 lakh.
The finance minister has hiked these limits. According to the new provisions, small businesses will have to conduct account audits if their turnover is Rs 60 lakh. The limit for professionals has been hiked to Rs 15 lakh.
The finance minister said in his Budget speech: “I, as finance minister, had introduced these limits in my Budget of 1984. It is high time to reduce the compliance burden on small taxpayers.”
A chartered accountant, Ashish Goel, said: “This is a good move and a great relief to small companies. It will save a lot of time and extra effort that these companies put to conduct these audits.”