When is a tax audit under Section 44AB required?
A tax audit under Section 44AB is mandatory if your business turnover exceeds ₹1 crore (raised to ₹10 crore where at least 95% of receipts and payments are digital), or professional gross receipts exceed ₹50 lakh. It's also required if you declare profits below the presumptive rate (44AD/44ADA) and your income exceeds the basic exemption.
1The thresholds
Business: ₹1 crore turnover, or ₹10 crore if cash receipts and payments are each ≤5%. Profession: ₹50 lakh receipts. Presumptive opt-out below the deemed rate also triggers an audit.
2The process
A Chartered Accountant audits your accounts and files Form 3CA/3CB along with Form 3CD. The tax-audit report is generally due by 30 September of the assessment year; late filing attracts a penalty under Section 271B.
Frequently asked questions
What is the penalty for not getting a tax audit?
Under Section 271B, the penalty is 0.5% of turnover/receipts, up to a maximum of ₹1,50,000, unless you show reasonable cause for the failure.
Related reading
← All answers · ❓ Q&A · 🧮 Free tools · 🇮🇳 हिंदी
General information for AY 2026-27, not professional advice. Laws change with each Finance Act, notification or amendment and depend on your specific facts — verify the current position with a licensed CA or advocate before acting.