Tax audit u/s 244 ab

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praveer

praveer (Querist)
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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)
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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)
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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 online

(Expert)
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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) |

---

### 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**.

---

### 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 |

---

### 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.

---

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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