Tax Audit: Definition, Meaning & Guide for Indian Businesses

Tax audit under Section 44AB is required for businesses with turnover > ₹1 crore (₹10 cr with 95%+ digital receipts) and professionals > ₹50 lakh receipts. Audit report due 30 Sept following the FY.

What is Tax Audit?

Tax audit is a CA-signed audit of your books to confirm compliance with the Income Tax Act. Threshold: ₹1 crore turnover for business (₹10 cr if 95%+ receipts are digital), ₹50 lakh for professionals. Report: Form 3CA-3CD (business) or 3CB-3CD (professional). Due date: 30 September of the AY (when ITR is due 31 Oct). Late audit attracts ₹1.5 lakh or 0.5% of turnover penalty (whichever lower). Audit report filing precedes ITR filing; you can't file ITR without audit if applicable.