Tax audit Limit

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Businesses, including sole proprietorships, companies, and partnerships, are generally required to undergo a tax audit if their annual sales, turnover, or gross receipts exceed Rs 1 crore. For businesses providing professional services or engaging in specific professions, this limit is reduced to Rs 50 Lakhs.

M S REDDY

M S REDDY (Querist)
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30 October 2020 Dear Sir,

A Proprietor firm / Company / Partnership firm / what is the limit of Tax audit , when the firm comes to under Tax audit, please give clarifications.

CS Rashi Jain

CS Rashi Jain (Expert)
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30 October 2020 A taxpayer is required to have a tax audit carried out if the sales, turnover or gross receipts of business exceed Rs 1 crore in the financial year. (for profession/services: Rs. 50 Lakhs.