Audit criteria

The limit of Rs. 60 lacs that you have mentioned is applicable to Tax Audit under Section 44AB of Income Tax Act and not audit under the Companies Act, 1956, which is applicable to all companies irrespective of turnover. PLEASE NOTE, THIS LIMIT U/S 44AB IS NOW INCREASED TO RS. 1 CRORE for business entities and Rs. 25 lacs for entities carrying out professions.

The limit of Rs. 60 lacs was earlier Rs. 40 lacs for business entities and Rs. 10 lacs for professionals. The purpose of specifying these limits is not to burden small business entities and professionals with more regulatory requirements, which are meant for large entities.