Budget: Turnover limit for audit of MSME accounts now at `5 crore

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Written by

Aashish Aryan

| New Delhi |


Updated: February 2, 2020 12:56:47 pm


“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.

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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.

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“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.

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