Tax Audit Under Section 44AB — Thresholds, Report & Compliance
By Parul Singh, GST Practitioner · Tax Audit
Table of Contents
Tax audit applies above 1 crore turnover. I conduct 50+ yearly. Missing deadline means 0.5% turnover penalty.
Tax audit under Section 44AB is mandatory for businesses and professionals crossing certain turnover thresholds. Here's everything you need to know.
Thresholds
| Category | Threshold |
|---|---|
| Business (regular) | ₹1 crore turnover |
| Business (digital transactions 95%+) | ₹10 crore turnover |
| Profession | ₹50 lakh gross receipts |
| Presumptive (lower income claimed) | If claiming lower than prescribed |
Forms
- Form 3CA: Audit report (if books maintained)
- Form 3CB: Audit report (if books not required but maintained voluntarily)
- Form 3CD: Detailed reporting — 44 clauses covering all aspects
Tax audit must be completed by 30 September of the assessment year. Late filing of ITR with audit attracts penalty under Section 271B.