Tax Audit is applicable under section 44AB to Individual taxpayers in case of Income from Business/Profession.


TABLE OF CONTENTS


In case of Regular Business Income


Turnover is up to 1 Crore 

If the Business turnover is up to ₹ 1 crore, has profit from the Business of lower than 6% or 8% of turnover, has opted out of presumptive taxation scheme in the immediate 5 previous years AND total income is more than the basic exemption limit in ANY previous year then tax audit u/s 44AB(e) shall be applicable.


Turnover is Between 1 to 2 Crores 

44AB(a): If the Business turnover is between ₹ 1 to 2 crores and if the cash receipts or cash payments are more than 5% of the gross receipts or cash payments then Tax audit u/s 44AB(a) shall be applicable.


44AB(e): If the Business turnover is between ₹ 1 to 2 crores, profit from the Business is lower than 6% or 8% of turnover, has opted out of presumptive taxation scheme in the immediately 5 previous years AND total income is more than basic exemption limit in ANY previous year then tax audit u/s 44AB(e) shall be applicable. 


Turnover is Between 2 to 10 Crores 

If the Business turnover is between ₹ 2 to 10 Crores and if the digital receipts or digital payments are 95% or more then Tax audit u/s 44AB will not be applicable.


If the Business turnover is between ₹ 2 to 10 Crores and if the cash receipts or cash payments are more than 5% of the gross receipts or cash payments then Tax audit u/s 44AB(a) shall be applicable.


Turnover is more than 10 Crores 

If the Business turnover is more than ₹ 10 Crores then Tax audit u/s 44AB(a) shall be applicable.


In case of Regular Profession Income


Turnover is upto 50 Lakhs

If the turnover of the Profession is up to ₹ 50 Lakhs, profit is less than 50% of turnover AND total income is more than the basic exemption limit in ANY previous year then Tax audit is applicable u/s 44AB(d).


Turnover is more than 50 Lakhs

If the turnover of the Profession is more than ₹ 50 Lakhs then Tax audit u/s 44AB(b) shall be applicable.



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