Applicability of Tax Audit
Professionals:
> Professionals like doctors, lawyers, architects, chartered accountants, etc., whose gross receipts from the profession exceed ₹50 lakh in the previous financial year.
> When cash transactions constitute no more than 5% of the total gross payments, the turnover threshold for mandatory tax audit is elevated to Rs. 75 Lacks.
Businesses:-
> Any person carrying on business whose total sales, turnover, or gross receipts in the previous financial year exceeds ₹1 crore. For professionals, the threshold is ₹50 lakh.
> If cash transactions are up to 5% of total gross payments, the threshold limit of turnover for a tax audit is increased to Rs.10 crore.
Presumptive Taxation Scheme:
> Taxpayers opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE are also subject to tax audit if their income exceeds the threshold limits and they claim income lower than the deemed profits and gains computed under these sections .
Due date of Tax Audit
The due date for tax audit is generally set to be 1 month before the due date of filing the income tax return. For most taxpayers, the due date for filing income tax returns is September 30th of the assessment year subject any extensions done by CBDT.
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