Tax Audit
Definition
Mandatory audit under Section 44AB based on gross turnover/receipts thresholds. Business: audit required if turnover > ₹1Cr (₹3Cr if 95%+ digital). Professionals: if gross receipts > ₹50L (₹75L if 95%+ digital).
In Context
Tax audit requires a chartered accountant to issue Form 3CA/3CB and Form 3CD, filed with the ITR. The threshold is on gross receipts — not on net income or profit. Penalty of 0.5% of turnover (min ₹1.5L) for non-compliance.
Related Terms
Want this in plain language?
Ask Kuber.AI to explain how Tax Audit works, in the language you think in.
Download Kuber.AI
⚠️ Disclaimer: This glossary is for educational purposes. Simplify Money provides analytical insights and guidance. We have applied for SEBI RIA registration.