Union Budget 2020: Turnover limit for audit of MSME accounts now at Rs 5 crore

The easing of this compliance burden, however, will be available only to those MSMEs which that carry out less than 5 per cent of their business transactions in cash, Sitharaman said.

Written by Aashish Aryan
New Delhi | Updated: February 2, 2020 12:56 PM IST

2 min read

FCRA, Foreign Contribution Regulation Act, FCRA bill, FCRA aadhaar, Amit Shah, foreign funds, lok sabha, lok sabha news, indian express

“In order to reduce compliance burden … I propose to raise by five times the turnover threshold for audit from the existing rupees one crore to five crore,” said Sitharaman.

Medium, Small and Micro Enterprises (MSME), which have a turnover up to Rs 5 crore, will not be required to get their books audited by an accountant from the next financial year, Finance Minister Nirmala Sitharaman said.

Read | Union Budget 2020: Corporate tax concessions extended to new electricity generation firms

The easing of this compliance burden, however, will be available only to those MSMEs which that carry out less than 5 per cent of their business transactions in cash, Sitharaman said. This will include the receipts and payments done by the MSMEs, according to budget documents.

From farm sector to personal finance, here’s The Indian Express’ full coverage of Budget 2020

“Currently, only businesses having a turnover of more than Rs 1 crore are required to get their books of accounts audited by an accountant … In order to reduce compliance burden … I propose to raise by five times the turnover threshold for audit from the existing rupees one crore to five crore,” she said.

The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines