Tax Audit Requirement Checker
Check if your business requires a tax audit under Income Tax Act. Avoid penalties by knowing your compliance obligations.
Business Details
Audit Status
Tax Audit Not Required
Your business is below the audit threshold
Threshold Information
✅ Your business/profession is currently below the tax audit threshold. However, ensure you maintain proper books of accounts.
What is Tax Audit?
Tax Audit under Section 44AB of the Income Tax Act is a detailed audit of the books of accounts of businesses and professionals whose turnover or gross receipts exceed specified limits. It ensures proper maintenance of accounts and compliance with tax laws.
Tax Audit Limits (FY 2025-26)
Business
Turnover > ₹1 crore
Audit required if cash transactions exceed limits
Profession
Gross receipts > ₹50 lakh
For specified professionals like CA, CS, Doctor, etc.
Section 44AD (Presumptive)
Turnover > ₹2 crore
Or if profit < 8% of turnover
Section 44ADA (Presumptive)
Receipts > ₹50 lakh
Or if profit < 50% of receipts
Consequences of Non-Compliance
- Penalty of 0.5% of turnover or ₹1.5 lakh (whichever is lower)
- Disallowance of expenses under Section 40(a)
- Presumptive income may be applied
- Increased scrutiny from tax authorities
Need Help with Tax Audit?
Our experienced chartered accountants can help you with tax audit compliance, documentation, and filing. Get expert assistance today.