Reviewed by MetaTax expert advisors and Chartered Accountants. Updated .
A business needs a tax audit when turnover exceeds ₹1 crore in a year. The limit rises to ₹10 crore if cash receipts and cash payments are each no more than 5% of the total. Professionals need one when gross receipts exceed ₹50 lakh.
The cash condition
The higher ₹10 crore limit depends on the share of cash, not on turnover alone. A trader with mostly digital receipts but significant cash payments to suppliers may not qualify.
New Income-tax Act
The Income-tax Act, 2025 applies from 1 April 2026 and renumbers many provisions, including the tax audit section. The thresholds above remain the reference point; confirm the current section numbers with your CA.
General information, not advice for your situation. Rules change; check with a Chartered Accountant before acting.