Tax Audit Calculator (Section 44AB)
Find out whether you need a Section 44AB tax audit. Answer a few questions about your turnover and profits to get an instant assessment.
Tax audit likely NOT required
Based on your inputs, a tax audit is generally NOT required for your business.
Indicative assessment. EvoTax confirms applicability and conducts the audit where needed.
When is a tax audit required under Section 44AB?
For businesses, a tax audit is required if turnover exceeds ₹1 crore — but this limit rises to ₹10 crore if at least 95% of your receipts and payments are digital (cash is 5% or less). For professionals, an audit applies if gross receipts exceed ₹50 lakh in the year.
A tax audit can also be triggered under the presumptive schemes: if you opt for Section 44AD (business) and declare profits below 6% (digital) or 8% (cash) of turnover, or Section 44ADA (profession) and declare below 50%, while your total income exceeds the basic exemption limit, an audit becomes mandatory.
F&O and intraday trading are treated as business, so the business turnover thresholds apply (the ₹10 crore digital limit usually applies to traders). This tool gives an indicative answer; EvoTax confirms applicability and conducts the audit (Form 3CD/3CB) where required.
Frequently Asked Questions
What is the tax audit turnover limit?
For business, the limit is ₹1 crore, increased to ₹10 crore if 95% or more of transactions are digital. For professionals, the limit is ₹50 lakh of gross receipts. Above these, a Section 44AB audit is mandatory.
Does tax audit apply to F&O traders?
F&O is treated as business income, so the business turnover thresholds apply. Since trading is digital, the ₹10 crore limit usually applies. Audit can also be triggered under presumptive rules if you declare low profits with income above the exemption limit.
What is the due date for tax audit?
The tax audit report is generally due by 30 September of the assessment year, and the ITR for audited taxpayers by 31 October. Missing it attracts a penalty under Section 271B.
What is the penalty for not getting a tax audit?
Under Section 271B, the penalty is 0.5% of turnover or gross receipts, up to a maximum of ₹1,50,000. EvoTax ensures your audit is completed and filed on time.
Who can conduct a tax audit?
Only a practising Chartered Accountant can conduct and certify a Section 44AB tax audit. EvoTax's CA team handles the audit and the related ITR-3 filing end to end.
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