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IS AUDIT MANDATORY IF COMMISSION INCOME IS MORE THAN 50 LAKH

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This query is : Resolved

BISWAJIT MAIKAP (Querist)

28 August 2026 iS audit mandatory in Income Tax , if commission income gross received 50,72,732/- for a DTH saler (commission based business, so he wants to show 80%-85% expencess ) ?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

28 August 2026 Tax Audit Requirement: Not Mandatory under Section 44AB(a) because gross receipts (₹50.72 lakh) are below the ₹1 crore threshold, assuming regular books of accounts are maintained under Section 44AA and Section 44AD provisions are not being violated or back-calculated out of a previous lock-in.

Expense Claim Caution: Claiming 80% to 85% expenses on pure commission income will attract strict scrutiny from the Income Tax Department. Adequate documentary evidence, ledger accounts, bills, and proper justification for business overheads must be maintained to substantiate such high expenses.

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