Tax Audit in India if Turnover above Rs. 50 Lakhs / 1 Crore

• Sec 44AB:- Audit Of Accounts Of Certain Persons Carrying On Business Or Profession
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• Audit of accounts is compulsory.The Due Date of filing the Tax Audit Report under Section 44AB is 30th Sept. For all other assessee’s who are not liable to get their Tax Audit done under Section 44 AB.An Assessee is liable to get his Tax Audit done by a Chartered Accountant mandatorily, if in the previous year,
• • In case of Business: – If Total Sales/ Gross Turnover exceeds Rs 1 Crore in any previous Year
  • In case of Profession: – If Gross Receipts exceeds Rs 25 Lakh 50 lakhs in any previous Year ( Applicable from Financial Year 2016-17 onwards) 
  • Assessees covered u/s 44AD/44AF/44BB/44BBB are also required to audit of accounts if they claim that their profit will be less than limit specified in respective section. e.g. u/s 44 AD Audit of accounts is required when two conditions are satisfied:-
    1. Claim lower profit than limit specified u/s 44AD (Limit of 8%)
    2. Total Income exceed basic exemption limit.
• Similarly, Assessees opting for presumptive taxation u/s 44AD are required to get their accounts audited if they are covered under sub section 4 and their total income exceeds basic threshold limit.
  Above limit is assessee wise and not business /profession wise e.g. If assessee has two business than turnover will be summed up.
• For calculation of turnover u/s 44AB, the turnover u/s 44AD/44AE shall be excluded.
• Above limit is assessee wise and not business /profession wise e.g. If assessee has two business than turnover will be summed up. 
• Audit Date:-
  • Normally 30th September.
  • In case, if assessee has International transactions, 30th November.
• Audit Report Form:- 3CA if audit required under any other law
  3CB if not covered above means covered under Income Tax.