Check whether a tax audit is required for a business, profession or presumptive-tax case. Get the applicable threshold, audit reason, Form 26 route and indicative penalty exposure.
Check your audit position
Choose the closest case. Only the questions needed for that route will appear.
Tax audit limits at a glance
The normal audit threshold and presumptive eligibility limit answer different questions. A ₹3 crore presumptive-business limit does not replace the ₹1 crore or ₹10 crore normal business audit test.
| Case | Main condition | Audit position | Current reference |
|---|---|---|---|
| Normal business | Turnover exceeds ₹1 crore | Audit generally required | Section 63 |
| Low-cash business | Cash receipts and cash payments are each within 5% | ₹10 crore threshold replaces ₹1 crore | Section 63 |
| Normal profession | Gross receipts exceed ₹50 lakh | Audit generally required | Section 63 |
| Presumptive business | Eligible turnover up to ₹2 crore, or ₹3 crore when cash receipts are within 5% | No audit when eligible income is declared as prescribed | Section 58(2) |
| Presumptive profession | Eligible receipts up to ₹50 lakh, or ₹75 lakh when cash receipts are within 5% | No audit when at least 50% qualifying profit is declared | Section 58(2) |
| Goods carriage | Not more than 10 goods carriages at any time | Compare declared profit with vehicle-based deemed income | Section 58(2) |
How the calculator decides
Choose the correct branch
Business, profession and each presumptive route have separate eligibility and audit tests.
Apply the threshold
Cash percentages can change the normal business threshold and presumptive eligibility ceiling.
Compare declared income
For Section 58 cases, the tool compares proposed profit with the prescribed deemed amount.
Tax audit under the Income-tax Act, 2025
Section 63 requires prescribed businesses and professions to obtain an audit before the specified date. The specified date is one month before the applicable return-filing due date. Where the accounts are already audited under another law, the other-law audit and the prescribed accountant’s report must be furnished by that date.
Form 26 replaces the legacy audit-report structure
Rule 47 provides Form 26. Part A applies when accounts are audited under another law, while Part B applies in other cases. The prescribed particulars are reported through Parts C and D. Forms 3CA, 3CB and 3CD remain relevant to the earlier Income-tax Act, 1961 framework.
Penalty for failure to complete the audit
Section 446 permits a penalty equal to the lower of 0.5% of business turnover or professional gross receipts and ₹1,50,000. The calculator shows this mathematical ceiling only; penalty proceedings and any legal defence depend on the actual facts.
Frequently asked questions
Is the business tax-audit limit ₹1 crore or ₹10 crore?
The normal threshold is ₹1 crore. It becomes ₹10 crore only when aggregate cash receipts do not exceed 5% of total receipts and aggregate cash payments do not exceed 5% of total payments. Both conditions must be satisfied.
Is the professional tax-audit threshold ₹50 lakh or ₹75 lakh?
The normal professional audit threshold is ₹50 lakh. ₹75 lakh is the enhanced presumptive-tax eligibility ceiling where cash receipts are within 5%; it is not a general replacement for the ₹50 lakh audit threshold.
Does declaring less than 6% or 8% automatically require an audit?
Under current Section 58, lower-than-prescribed profit must be tested together with total income and the independent Section 63 turnover conditions. The calculator performs both checks for an eligible presumptive-business case.
Who can use presumptive taxation for a general business?
An eligible assessee is a resident individual, HUF or firm other than an LLP, subject to stated deduction and activity restrictions. Specified profession, commission or brokerage, agency business and goods-carriage business are outside the general-business entry.
How is presumptive professional income calculated?
For an eligible specified professional under Section 58, the deemed profit is 50% of gross receipts or the higher profit actually claimed.
How is goods-carriage presumptive income calculated?
For a heavy goods vehicle it is ₹1,000 per ton of gross or unladen weight for each month or part-month owned. For another goods carriage it is ₹7,500 per vehicle for each month or part-month owned.
Which tax-audit form applies now?
Rule 47 under the Income-tax Rules, 2026 prescribes Form 26. Part A applies where another law already requires an audit, Part B applies otherwise, and Parts C and D contain the prescribed particulars.
What is the due date for the tax-audit report?
Section 63 defines the specified date as one month before the applicable due date for furnishing the income-tax return. Check current notifications before relying on a calendar date because extensions may be issued.
What is the penalty for missing a required tax audit?
Section 446 states that the Assessing Officer may impose the lower of 0.5% of relevant turnover or gross receipts and ₹1,50,000.
Official sources and scope
Scope: This is an initial screening tool. It does not decide turnover recognition, mixed activities, international transactions, specified domestic transactions, non-resident presumptive provisions, special audits or the effect of later notifications.
Official references: Section 58 — presumptive business and profession · Section 62 — books of account · Rule 47 — Form 26 audit report · Section 446 — penalty.
Related calculators and services
TaxClear · Tax Audit Applicability Report
Audit result
| Case tested | |
|---|---|
| Applicable provision | |
| Threshold / deemed income | |
| Audit report | |
| Specified date | One month before the applicable return due date |
| Indicative maximum penalty |
This is a preliminary screening estimate under the Income-tax Act, 2025. Verify the complete facts and any later notification before filing.
Tax Audit Applicability Calculator
