Tax audit
What Tax audit means, where you will meet it and what it means for your business.
DefinitionA tax audit under Section 44AB is an independent audit of accounts for income tax, required when business turnover exceeds ₹1 crore (₹10 crore if cash is under 5%) or professional receipts exceed ₹50 lakh.
The tax audit is separate from the statutory audit a company must have under the Companies Act. It applies to any taxpayer whose business turnover crosses ₹1 crore, raised to ₹10 crore when cash receipts and payments are each under 5% of the total, or whose professional receipts cross ₹50 lakh. It also catches anyone on presumptive taxation who declares profit below the presumptive rate while earning above the basic exemption. The auditor files Form 3CA or 3CB with the detailed Form 3CD by 30 September, and the ITR is then due on 31 October. You meet it as your business grows or when you step off 44AD. What it means for you: books must be complete by August, and failing to get audited attracts a penalty of 0.5% of turnover up to ₹1.5 lakh under Section 271B.
Where you will meet this term
- Income Tax Planning & FilingSalaried people, investors, NRIs, freelancers and business owners who want the return right, not just filed.from ₹999
- Accounting & MISFounders who want the books closed every month and a one-page MIS they can actually read, with GST and TDS data ready on time.from ₹4,999/month