Tax Audit Applicability Calculator

Check if your business requires a tax audit under various sections of the Income Tax Act

About Tax Audit

Under the Income Tax Act, 1961, certain taxpayers are required to get their accounts audited based on their business turnover, profession income, or other criteria. A tax audit is mandatory under various sections:

  • Section 44AB: For businesses with turnover exceeding specified limits
  • Section 44ADA: For professionals opting out of presumptive taxation
  • Section 44AE: For transport business opting out of presumptive taxation
  • Section 44BB/44BBB: For non-residents in specific businesses
Basic Details
Digital payments include bank transfers, credit/debit cards, UPI, etc.
Business Income Details
₹
Under Section 44AD
Cash Transaction Details
₹
Excludes receipts via banking channels
₹
Excludes payments via banking channels
₹
₹
Tax Audit Applicability Results
Tax Audit Status
Audit Required

Based on your business details, you are required to get your accounts audited under Section 44AB of the Income Tax Act.

Applicable Sections
Threshold Analysis
Category Your Value Threshold Status
Business Turnover ₹ 0 ₹ 1 Cr / ₹ 2 Cr Within Limit
Cash Transactions ₹ 0 5% of Turnover Within Limit
Tax audit requirements are subject to changes in tax laws. Please consult a tax professional for specific advice.
Key Due Dates:
  • Tax Audit Report Filing: 30th September, 2024
  • Income Tax Return Filing: 31st October, 2024
  • If tax audit is applicable, Form 3CA/3CB along with Form 3CD needs to be filed by a Chartered Accountant.
  • Failure to comply with tax audit requirements may result in penalties under Section 271B of the Income Tax Act.

Tax Audit Guide & Tutorial

Understanding Tax Audit

A tax audit is a review of an individual's or organization's tax returns and financial records to verify income, deductions, and compliance with tax laws. Under the Income Tax Act, certain taxpayers are required to get their accounts audited based on specific criteria.

Key Components
  • Business turnover limits
  • Professional receipts
  • Presumptive taxation
  • Cash transactions
Important Points
  • Filing deadlines
  • Required documentation
  • Penalty provisions
  • Compliance requirements
Tax Audit Requirements
Category Threshold/Criteria Applicable Section
Business Turnover > ₹1 Cr (₹10 Cr for digital transactions) 44AB
Profession Gross receipts > ₹50 Lakhs 44AB
Presumptive Taxation Claiming lower profits than prescribed 44AD/44ADA/44AE
Cash Transactions Exceeding specified limits 44AB
Tax Audit Process
Required Documents
  • Financial Records:
    • Books of accounts
    • Bank statements
    • Sales/purchase records
    • Asset registers
  • Tax Documents:
    • Previous tax returns
    • TDS certificates
    • GST returns
    • Advance tax challans
Audit Forms
  • Form 3CA/3CB:
    • Audit report format
    • Auditor's opinion
    • Compliance certification
    • Financial statements
  • Form 3CD:
    • Detailed particulars
    • 44 clauses coverage
    • Comprehensive disclosures
    • Statutory compliance
How to Use the Calculator
1
Enter Basic Details

Select assessment year, taxpayer type, and business/profession category.

2
Input Business Information

Enter turnover, receipts, and presumptive taxation details.

3
Specify Cash Transactions

Enter details of cash receipts and payments during the year.

4
Review Results

Check audit applicability, relevant sections, and compliance requirements.

Frequently Asked Questions

Tax audit is mandatory when:

  • Business Turnover:
    • Exceeds ₹1 crore
    • ₹10 crore for digital transactions
    • Applicable to all businesses
  • Professional Income:
    • Gross receipts > ₹50 lakhs
    • All professions covered
    • Annual basis calculation

Penalty provisions include:

  • Under Section 271B:
    • 0.5% of turnover
    • Maximum ₹1.5 lakhs
    • For failure to get audited
  • Other Consequences:
    • Scrutiny assessment
    • Interest implications
    • Prosecution provisions

Presumptive taxation rules:

  • Section 44AD:
    • 8% of turnover (6% for digital)
    • For businesses
    • Turnover up to ₹2 crore
  • Section 44ADA:
    • 50% of gross receipts
    • For professionals
    • Receipts up to ₹50 lakhs

Required records include:

  • Primary Records:
    • Cash book and ledgers
    • Purchase and sales records
    • Stock registers
  • Supporting Documents:
    • Bills and invoices
    • Bank statements
    • Asset documentation

Important deadlines:

  • Regular Cases:
    • September 30th
    • For non-transfer pricing cases
    • After financial year end
  • Special Cases:
    • November 30th
    • For transfer pricing cases
    • Extended deadlines if any