Tax audit u/s 244 ab

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praveer

praveer (Querist)

20 July 2012 Sir,

Can you guide me about applicability of Tax Audit for companies and other form of business?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

20 July 2012 In case of any Business, whether company or other assessee, in case Turnover exceeds Rs. 60.00 lacs (upto FY 2011-12) Tax Audit is applicable. The limit has been raised from 60.00lacs to 1.00 Crore for AY 2013-14.
(FY 2012-13).
.

praveer

praveer (Querist)

22 July 2012 thaks sir,

IS the limit of Rs. 60.00 lacs for FY 2011-12 and Rs. 100.00 Lacs From FY 2012-13, is for both, (a) Service providers and (b) trader and manufacturer of Goods and materials ? if not than please provide me the details.

thanks

praveer

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

26 July 2025 Great question! Here's a clear explanation of **Tax Audit applicability under Section 44AB** for different types of businesses and financial years you mentioned:

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### 📌 Applicability of Tax Audit u/s 44AB (FY 2011-12 & FY 2012-13)

| Financial Year | Turnover Limit for Tax Audit | Applies To |
| -------------- | ---------------------------- | ------------------------------------------------------------------------ |
| FY 2011-12 | ₹60 lakhs | **All businesses** (including service providers, traders, manufacturers) |
| FY 2012-13 | ₹1 crore | **All businesses** (including service providers, traders, manufacturers) |

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### Details:

1. **Businesses (Trading, Manufacturing, Services):**

* The tax audit threshold was **₹60 lakhs** up to FY 2011-12.
* For FY 2012-13 onwards, it was **increased to ₹1 crore**.
* This applies **equally to traders, manufacturers, and service providers** engaged in business.

2. **Professionals:**

* Different limit applies under Section 44AB (not your query, but good to note).
* For professionals, the limit was ₹25 lakhs (increased later to ₹50 lakhs).

3. **Conditions:**

* The limit applies to **gross receipts or turnover** from business.
* If the turnover exceeds the applicable threshold, **tax audit is mandatory**.

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### Summary Table:

| Type of Assessee | Turnover Limit (FY 2011-12) | Turnover Limit (FY 2012-13) | Audit Applicability if Turnover Exceeds |
| ---------------- | --------------------------- | --------------------------- | --------------------------------------- |
| Trader | ₹60 lakhs | ₹1 crore | Yes |
| Manufacturer | ₹60 lakhs | ₹1 crore | Yes |
| Service Provider | ₹60 lakhs | ₹1 crore | Yes |
| Professional | ₹25 lakhs | ₹50 lakhs | Yes |

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### Additional Notes:

* For businesses where **digital transactions exceed 95%**, the turnover limit for tax audit is **increased to ₹10 crore** from FY 2016-17 onwards (for reference).

* If the assessee opts for presumptive taxation under Sections 44AD/44ADA, audit requirements differ.

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If you want, I can help with examples or checklist for tax audit for different types of businesses. Would you like that?

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