Applicability is fact-specific
Tax audit under income tax law can apply based on turnover/gross receipts, profession category, presumptive taxation conditions and reporting requirements. Businesses should check applicability before year-end filing.
Situations this page is built for
- Business turnover or professional receipts are near threshold.
- You used or exited presumptive taxation.
- Trading/F&O income creates uncertainty.
- Books are incomplete and ITR deadline is close.
- You need audit report, financial statements and ITR alignment.
Documents and details usually required
- Sales and purchase register.
- Profit and loss account and balance sheet.
- Bank statements and cash book.
- GST returns and books reconciliation.
- Previous year ITR and audit report.
- Details of presumptive income, losses and trading activity.
Practical process before hiring
Review activity type
Classify business, profession, trading or mixed income correctly.
Check thresholds and conditions
Review turnover, receipts, cash transactions and presumptive rules.
Prepare books
Ensure ledger, bank, GST and financial statements are audit-ready.
Coordinate filing
Align audit report, tax computation and ITR filing before deadline.
What to expect in India
| Work type | Typical price range | Timeline |
|---|---|---|
| Applicability consultation | Rs. 1,500 - Rs. 5,000 | Same day to 2 days |
| Small business tax audit | Rs. 15,000 - Rs. 50,000 | 5-15 days |
| Complex/multi-branch audit | Rs. 50,000+ | Case-specific |
Prices vary by documents, urgency, city, professional experience and whether previous periods need cleanup.
Common red flags and mistakes
- Checking only GST turnover and ignoring income tax audit rules.
- Not preparing books before audit deadline.
- Treating F&O or intraday trading casually.
- Not coordinating GST, books and ITR figures.
- Missing audit report filing deadline.
What to mention when you post
- Entity type, financial year, turnover and compliance deadline.
- Whether books are final, partly ready or need cleanup before filing/audit.
- Which forms/reports are needed: audit report, ROC forms, ITR, financial statements or board records.
- Number of pending years, if any.
- Whether DSC, MCA login, previous filings and financial statements are available.
How to choose the right professional
- Confirm professional qualification and whether certification/signature is included.
- Ask for a document checklist before work starts.
- Clarify whether accounting cleanup is included or billed separately.
- Check who coordinates CA, CS, DSC, MCA and tax filing steps.
- Insist on deadline tracking and proof of filing/challans.
Questions people ask before hiring
Is tax audit needed for every business?
No. Applicability depends on turnover, receipts, tax regime choices and facts.
Can a CA decide tax audit applicability?
Yes, a CA can review your books and tax position for audit applicability.
Is GST audit same as tax audit?
No. GST compliance and income tax audit are different requirements.
When should I start?
Start before the ITR/audit deadline because books cleanup often takes time.