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Category: Accounting Financial

Internal Audit vs Statutory Audit: Key Differences Posted On August 28, 2025August 28, 2025
Accounting FinancialAuditing Services

Internal Audit vs Statutory Audit: Key Differences

Posted By admin

Introduction Auditing is an integral part of corporate governance. It provides assurance that business operations, controls, and financial statements are […]

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E-Invoicing Under GST – Latest Updates, Process, and Compliance Guide (2025) Posted On August 18, 2025August 18, 2025
Accounting Advisory ServicesAccounting FinancialTax Service

E-Invoicing Under GST – Latest Updates, Process, and Compliance Guide (2025)

Posted By admin

E-invoicing, or electronic invoicing, is a system introduced by the GST Council of India for the electronic authentication of B2B […]

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Understanding Form 3CD Disclosures – A Guide for Taxpayers and Professionals Posted On August 8, 2025August 13, 2025
Accounting Advisory ServicesAccounting FinancialAudit AssuranceAuditing Services

Understanding Form 3CD Disclosures – A Guide for Taxpayers and Professionals

Posted By admin

In India, businesses falling under the ambit of tax audit are required to furnish specific audit reports to the Income […]

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GST Reconciliation Challenges and the Importance of Timely Filings Posted On July 9, 2025
Accounting Advisory ServicesAccounting FinancialGST

GST Reconciliation Challenges and the Importance of Timely Filings

Posted By admin

🟑 Introduction Goods and Services Tax (GST) has streamlined the indirect tax system in India, but with this unification comes […]

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Updated TDS Provisions for Vendor Payments – Risk of Non-Compliance for FY 2025–26 Posted On June 27, 2025
Accounting Advisory ServicesAccounting FinancialAudit AssuranceAuditing Services

Updated TDS Provisions for Vendor Payments – Risk of Non-Compliance for FY 2025–26

Posted By admin

πŸ’Ό Vendor payments are a routine but critical part of every business. However, failing to comply with Tax Deducted at […]

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Every taxpayer, especially business owners and professionals, must determine whether a tax audit under Section 44AB of the Income Tax Act is applicable for the financial year 2024–25. With evolving thresholds and digital compliance norms, here’s a complete checklist with examples to guide your audit decision. ❓ What is a Tax Audit? A Tax Audit is a detailed review of your financial records and compliance, mandated under Section 44AB of the Income Tax Act, 1961. It ensures: βœ”οΈ Accuracy of income and deductions πŸ“š Proper maintenance of books πŸ•’ Timely filing of returns βœ… Checklist for Audit Applicability – FY 2024–25 🏒 Business (Non-Presumptive) – Section 44AB(a) Criteria Audit Requirement Turnover ≀ β‚Ή1 crore Not required Turnover > β‚Ή1 crore and ≀ β‚Ή10 crore Required only if cash receipts/payments > 5% Turnover > β‚Ή10 crore Always required πŸ“Œ Example 1: Mr. A runs a trading business with β‚Ή7.5 crore turnover and 98% digital transactions. ➑ No Audit πŸ“Œ Example 2: XYZ Pvt. Ltd. has β‚Ή12 crore turnover. ➑ Audit Required 🧾 Presumptive Taxation (Section 44AD) – Small Businesses Criteria Audit Requirement Turnover ≀ β‚Ή2 crore, profit β‰₯ 8% (cash) / 6% (digital) Not required Turnover up to β‚Ή3 crore (w.e.f. 1 April 2024), ≀ 5% cash receipts Not required Profit < prescribed % and income > exemption Audit Required πŸ“Œ Example 3: Retailer with β‚Ή2.8 crore turnover, 96% digital, 6.5% profit. ➑ No Audit πŸ“Œ Example 4: β‚Ή1.8 crore turnover, 4% profit, β‚Ή12 lakh income. ➑ Audit Required πŸ‘¨β€βš–οΈ Professionals (Section 44ADA) Criteria Audit Requirement Gross receipts ≀ β‚Ή50 lakh, profit β‰₯ 50% Not required Up to β‚Ή75 lakh, ≀ 5% cash receipts Not required Profit < 50% and income > exemption Audit Required πŸ“Œ Example 5: CA with β‚Ή60 lakh revenue, 97% digital, 50% profit. ➑ No Audit πŸ“Œ Example 6: Consultant with β‚Ή52 lakh revenue, 40% profit. ➑ Audit Required πŸ”„ Opting Out of the Presumptive Scheme πŸ“Œ Example 7: Mr. D opts out of presumptive in FY 2024–25. ➑ Audit required for 5 years 🚚 Transporters / Non-Residents (Section 44AE/44BB/44BBB) Audit applies if: Profit is below the deemed % and total income exceeds the exemption limit. πŸ“‘ Already Audited under Other Laws Audit under other laws counts as a valid Tax Audit if filed on time. πŸ—“οΈ Due Dates for Tax Audit – FY 2024–25 Particulars Due Date Tax Audit Report filing (without TP) 30th September 2025 Tax Audit Report with Transfer Pricing (Form 3CEB) 31st October 2025 ⚠️ Penalty for Non-Compliance If the audit is not conducted when required, Penalty = 0.5% of turnover/gross receipts, subject to a maximum of β‚Ή1.5 lakh. Can be waived for reasonable causes like illness, natural calamity, etc. πŸ”š Conclusion Know your numbers. Evaluate your turnover, digital vs. cash transactions, profit declaration, and income levels. This determines your tax audit requirement. With new relaxations for digital transactions, many small businesses and professionals can now avoid an audit, but only if conditions are met. πŸ’‘ Need help determining your audit requirement or filing returns? We’re here to assist with expert evaluation and timely compliance. ❓ Frequently Asked Questions (FAQs) Has the presumptive limit for businesses increased to β‚Ή3 crore? βœ… Yes, from FY 2024–25 if total cash receipts are ≀ 5% What happens if I opt out of presumptive taxation after opting in? πŸ” If you opt out of Section 44AD in any one year, you cannot opt in again for the next 5 years, and tax audit becomes mandatory during that period (if income exceeds the exemption limit). Is tax audit applicable if I have already undergone an audit under another law (e.g., Companies Act)? πŸ“„ Yes, but if such an audit is done and the report is submitted on time in Form 3CA & 3CD, it suffices for tax audit under Section 44AB. Can existing statutory audit under Companies/LLP Act replace tax audit? πŸ“˜ Yes, if the audit report (Form 3CA/3CB + 3CD) is filed on time under Sectionβ€―44AB. What is the due date for filing the tax audit report for FY 2024–25? πŸ—“οΈ 30β€―September 2025, or 31β€―October 2025 if subject to transfer pricing audit. Posted On June 16, 2025
Accounting Advisory ServicesAccounting FinancialAudit AssuranceAuditing Services

Is an Audit Required? – Checklist for Tax Audit Applicability for FY 2024–25

Posted By admin

Every taxpayer, especially business owners and professionals, must determine whether a tax audit under Section 44AB of the Income Tax […]

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Key Changes in Income Tax Rules for FY 2024–25 (Assessment Year 2025-26) Posted On June 12, 2025June 12, 2025
Accounting Advisory ServicesAccounting FinancialAuditing ServicesITR

Key Changes in Income Tax Rules for FY 2024–25 (Assessment Year 2025–26)

Posted By admin

The financial year 2024–25 brings several crucial changes to India’s income tax landscape that every taxpayer, whether salaried, self-employed, or […]

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9 Key Updates in ITR-1 to ITR-4 for FY 2024–25 Posted On June 12, 2025June 12, 2025
Accounting Advisory ServicesAccounting FinancialBookkeepingITR

9 Key Updates in ITR-1 to ITR-4 for FY 2024–25

Posted By admin

1. Expanded Eligibility for ITR-1 Now allowed for individuals with: Family pension (not just salary/pension income) Income from other sources […]

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Posted On April 24, 2025July 25, 2025
Accounting Advisory ServicesAccounting FinancialAudit AssuranceAuditing ServicesBookkeepingBusiness Consulting FirmBusiness Management Consultantchartered accountant near me

Important Amendments to ITR Filing Rules for the Financial Year 2025–26

Posted By admin

πŸ†• New Tax Regime Becomes the Default The new tax regime under Section 115BAC is now the default for: Individuals […]

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Innovations in Circular Economy and Zero-Waste Operations Posted On January 8, 2025July 25, 2025
Accounting Advisory ServicesAccounting FinancialAudit AssuranceAuditing Services

Innovations in Circular Economy and Zero-Waste Operations

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As the world faces growing environmental challenges, shifting to a circular economy has become a key part of sustainable business […]

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