Doubling tax audit limit to boost ease of doing biz
February 02, 2021
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The government has changed the definition of small companies by increasing their thresholds for paid-up capital to ₹2 crore from ₹50 lakh and the turnover limit to ₹20 crore from ₹2 crore. The FM said this will benefit over over two lakh companies in easing their compliance requirements.
Bhushan Parekh, Director, SME Solutions, said doubling the tax audit limit to ₹10 crore will improve ease of doing business for micro and small enterprises. This will also boost digital payments.
The four times increase in the paid-up capital threshold of small companies to ₹2 crore and turnover by ten times to ₹20 crore will ease their compliance and procedural burden, he added.