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.
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