Tax Audit FY 2024-25 (AY 2025-26): Applicability, Due Dates, Penalties & Presumptive Taxation
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Are you wondering whether a Tax Audit is applicable for FY 2024-25 (AY 2025-26)? Every year, thousands of businesses and professionals in India face confusion about tax audit limits, presumptive taxation schemes, due dates, and penalties.
Under the Income-tax Act, 1961, certain taxpayers are required to get their accounts audited to ensure proper reporting of income, expenses, and deductions. The provisions mainly fall under Section 44AB, along with presumptive taxation options under Sections 44AD, 44ADA, and 44AE.
📌 This blog covers:
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Applicability and turnover limits
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Presumptive taxation schemes (44AD, 44ADA, 44AE)
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Important due dates for filing audit reports & ITRs
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Penalties and consequences of late filing
⚖️ Applicability of Tax Audit – Section 44AB
🏢 For Businesses
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Tax Audit is mandatory if turnover exceeds ₹1 crore.
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Exemption up to ₹10 crore if:
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Cash receipts ≤ 5% of total receipts
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Cash payments ≤ 5% of total payments
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👨⚕️ For Professionals
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An audit is required if gross receipts exceed ₹50 lakh.
📉 For Presumptive Taxation
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Audit required if income is declared below the presumptive rate and total income exceeds the basic exemption limit.
💡 Presumptive Taxation Schemes
🔹 Section 44AD – Presumptive Taxation for Businesses
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Applicable to Resident Individuals, HUFs, Partnership Firms (not LLPs).
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Turnover limit: Up to ₹2 crore.
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Presumptive income: 8% (cash) or 6% (digital).
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Audit required if income declared below presumptive rate and total income exceeds basic exemption.
🔹 Section 44ADA – Presumptive Taxation for Professionals
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Applicable to Resident Individuals or Partnership Firms (not LLPs).
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Professions: Legal, medical, engineering, accountancy, consultancy, architecture, etc.
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Gross receipts up to ₹50 lakh.
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Presumptive income: 50% of receipts.
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Audit required if declared below 50% and income exceeds the exemption.
🔹 Section 44AE – Presumptive Taxation for Transporters
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Applicable to assessees owning ≤10 goods vehicles.
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Income: ₹1,000 per ton/month for heavy vehicles or ₹7,500 per month for others.
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Audit required if declared below the scheme rate.
⏳ Income Tax Filing Deadlines and Penalties (FY 2024-25 / AY 2025-26)
| Category / Action | Due Date | Section / Rule | Penalty / Notes |
|---|---|---|---|
| Individual / HUF / AOP / BOI (no audit) | 16th Sept 2025 | – | – |
| Businesses (Requiring Audit) | 31st Oct 2025 | Sec. 271B | Penalty of 0.5% of turnover (max ₹1,50,000) |
| Businesses (Transfer Pricing Cases) | 30th Nov 2025 | – | – |
| Revised Return | 31st Dec 2025 | Sec. 139(5) | – |
| Belated / Late Return | 31st Dec 2025 | Sec. 234F | Penalty up to ₹5,000 (₹1,000 if income ≤ ₹5 lakh) |
| Interest (late filing / non-payment) | – | Secs. 234A, 234B, 234C | 1% per month (simple interest) |
| Updated Return (up to 4 years) | 31st Mar 2030 | Sec. 139(8A) | Extra tax 25%–50% depending on filing date |
| Carry forward of losses (except house property) | – | – | Not allowed if return not filed on time |
