Audit limit

This discussion clarifies the audit limit for businesses, distinguishing between 1 crore and 5 crore rupees. The limit depends on the proportion of cash receipts and payments compared to total transactions. If cash transactions are less than 5% of the total, the limit is 5 crores; otherwise, it's 1 crore. Transactions made via cheque or digital modes are considered, provided they are demonstrably through account payee instruments.