Turnover limits
A tax audit is generally required when business turnover exceeds ₹1 crore. If cash receipts and cash payments are each within 5% of totals, the limit is ₹10 crore. Professionals need audit when gross receipts exceed ₹50 lakh.
Presumptive taxation cases
Businesses that declare profit lower than the presumptive rate under Section 44AD, when their income exceeds the exemption limit, may also need audit.
Due dates
The audit report is normally due by 30 September, and the ITR by 31 October.
What to prepare
Complete books, bank reconciliations, stock statement, fixed asset details, loan statements, GST returns and TDS returns. Clean monthly books make the audit quick.
New law
The Income-tax Act, 2025 replaces the 1961 Act from 1 April 2026 and renumbers sections. The underlying audit concept continues; we apply the provisions relevant to your year.
This article is general information, not legal advice. Rules change; contact us for advice on your situation.