Tax Audit

Businesses: If the gross receipts or turnover of a business exceeds Rs. 1 crore, then a tax audit is required.

  • If the gross receipts or turnover of a business exceeds Rs. 1 crore, but is less than Rs. 10 crores, and the percentage of cash transactions is less than 5%, then a tax audit is not required.
  • If the gross receipts or turnover of a business exceeds Rs. 10 crores, regardless of the percentage of cash transactions, then a tax audit is required.

Professionals: If the gross receipts of a professional exceed Rs. 50 lakhs, then a tax audit is required. If a professional is eligible for the presumptive taxation scheme under Section 44ADA, and claims a profit below the prescribed limit, then a tax audit is required.

Please note that these are the general applicability criteria. There may be other circumstances that may require a tax audit, such as if a taxpayer is involved in a high-risk business or if the taxpayer has been under investigation by the tax authorities.

We have done 20 tax audit per year Section 44AB of the Income Tax Act 1961 states that if the turnover or total annual income of a business exceeds a prescribed limit, its accounts must be audited by a chartered accountant. The CPA provides its findings and observations in the tax audit report on forms 3CA/3CB and 3CD.A tax audit services is an independent examination of an entity’s books by an auditor, as required by the Income Tax Act 1961. Tax audits and the timely, transparent and clearly documented filing of tax returns is an important task for any assessee undergoing an audit. To achieve this goal, an independent tax auditor like Hemangi & Associates is needed to perform the task.