Applicability of Tax Audit in India: Complete Guide for Businesses & Professionals

The applicability of Tax Audit in India is governed by Section 44AB of the Income Tax Act, 1961. It lays down the threshold limits and conditions under which an audit of accounts is mandatory for businesses and professionals.

Applicability of Tax Audit

What is Tax Audit?

A tax audit is an examination and review of accounts of an entity to ensure compliance with the provisions of the Income Tax Act. It is conducted by a Chartered Accountant (CA).

Applicability under Section 44AB

1. For Business (Non-Professionals):

So, if cash transactions are minimal, businesses can enjoy the ₹10 crore threshold.

2. For Professionals:
3. Presumptive Taxation Scheme (Sections 44AD, 44ADA, 44AE):
4. Section 44AD – For Small Businesses:
5. Section 44ADA – For Professionals:
6. Section 44AE – For Transporters:

Who Can Conduct a Tax Audit?

Due Date for Tax Audit Report (Form 3CA/3CB + 3CD):

Key Forms:

If you want help determining whether your specific case is liable for tax audit, feel free to share your turnover, cash transactions, nature of income, etc. 

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