Tax Audit Due Date: Threshold for Businesses and Professions

Tax audit due date for AY 2024-25 is 30th September 2024.

What is a tax audit?

A tax audit is required for certain businesses and professionals whose income or turnover exceeds specified limits under the Income Tax Act.

It is an detailed examination of a taxpayer’s financial records by the tax authorities to ensure that income, expenses, deductions, and other related tax obligations are reported accurately.

Other tax audit due dates

Taxpayers	Due Date
Companies and entities subject to tax audit, and partners in such firms	31st October 2024
Assessees requiring audit under Section 92E	30th November 2024

Important points to remember

Business turnover based limit –

• Cash transaction above 5% – 1 crore.
• Digital transaction above 95% – 10 crore.
• No tax audit required, if turnover is less than 2 crore and opt 44AD section where minimum 6% gain on digital transaction and 8% profit on cash transaction are needed.
• In Budget 2023, this 2 crore limit for 44AD has been increased to 3 crore but must have digital transaction more than 95%.

Professional turnover based limit –

• Audit required is gross receipt exceeds 50 lakh.
• Upto 50 lakh, if profit is less than 50% of the turnover then audit is required.
• If opt 44ADA and show minimum 50% profit then audit is not required.
• In Budget 2023, this 50 lakh limit is increased to 75 lakh.

Tax Audit Limit For Business AY 2024-25

Clause for 44AD

If assessee opted out from 44AD, profit limit should be maintained upto 6 assessment years.
If profit declared below the limit, assessee is not eligible for 44AD upto 6 assessment years.

Here, Profit limit for –

• Digital receipts should be atleast 6%.
• Cash receipt should be atleast 8%.

Tax Audit Limit For Profession AY 2024-25

Here, Total gross receipts limit is Rs 50 lakh.

What is the threshold limit of total income?

The threshold limit of total income are:

Under Old Regime	Under New Regime
Upto 59 Years – 2.5 Lakh 60 to 97 Years – 3 Lakh 80 Years and above – 5 lakh	3 lakh

How to do tax audit?

Necessary forms are required to be submitted to complete the tax audit. The forms are:

• Form CA: Applicable in case of Companies or professionals

• Form CB: Normally applicable for individual or proprietorship firm.

• Form CD: Detailed form in which all the details are mentioned.

Penalty for Delay or Non-Filing in Filing Tax Audit

When taxpayer are eligible for tax audit but fails to do so, they may be subject to a penalty as per Section 271B of the Income Tax Act. The penalty will be the lesser of the following amounts:

• 0.5% of total sales, turnover, or gross receipts
• Rs 1,50,000

FAQs