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Regarding Applicability of Tax Audit u/s 44AB

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This query is : Resolved

Suresh S. Tejwani (Querist)

25 September 2026 Applicability of Tax Audit u/s 44AB in case of Pvt ltd Company having Professional Receipts of ₹23 Lakh and Loss of ₹35 Lakh :
Whether the company is required to conduct a tax audit under Section 44AB of the Income-tax Act, 1961?
Does the business loss of ₹35 lakh, by itself, make the company liable for tax audit under Section 44AB?

If Section 44AB is not applicable, is the company required only to:
prepare and file its income-tax return (ITR-6); and
conduct its statutory audit under the Companies Act, 2013?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

26 September 2026 Tax audit under Section 44AB is not applicable because the professional receipts of ₹23 Lakh are below the threshold of ₹50 Lakh, and loss by itself does not attract tax audit for a corporate entity. The company only needs to complete its Statutory Audit under the Companies Act, 2013 and file ITR-6 on or before the due date u/s 139(1) to validly carry forward its ₹35 Lakh loss.

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