Compliance tools
When is a tax audit required?
A quick check against the turnover and cash-receipt thresholds in section 44AB.
A tax audit under section 44AB applies to a business above one crore rupees in turnover. The limit rises to ten crore rupees where cash receipts and payments are each within 5 per cent of the total. For a profession, the limit is fifty lakh rupees, and the cash relaxation does not apply. The audit also applies regardless of turnover for a presumptive taxpayer declaring income below the presumptive rate above the exemption limit. The audit report is due by 30 September, and the return by 31 October.
Tax audit applicability checker
Section 44AB, assessment year 2026-27.
Answer the questions above.
This tool is provided for information. It applies the thresholds shown for assessment year 2026-27 and does not account for every provision that may apply to a particular case. Confirm the position with the firm before you rely on it.
The Income-tax Act, 2025 commences on 1 April 2026 and replaces the Income-tax Act, 1961. The year ended 31 March 2026 is still assessed under the 1961 Act. Section numbering under the 2025 Act differs. Confirm the position for your year with the firm.
Thresholds and schedules reviewed by Lalit Mohan Tyagi, FCA on 26 August 2026.
How this is calculated
This tool applies section 44AB of the Income Tax Act, 1961. A business is compared against the turnover limit in the section, and a profession against the separate limit for professionals. The cash-receipts test that raises the business limit is drawn from the same section.
Where the fourth question is answered yes, the tool applies section 44AB read with section 44AD(4) or section 44ADA. These provisions require an audit when income is declared below the presumptive rate, despite total income exceeding the basic exemption limit.
The report and return due dates shown reflect the general dates under section 44AB and section 139(1) of the Act. They apply to a taxpayer subject to audit, and an extension notified for a particular year is not reflected here.