Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
When it applies
Business: turnover over ₹1 crore (or ₹10 crore for largely digital businesses). Profession: receipts over ₹50 lakh. Confirm limits per the current Finance Act.
Presumptive trigger
Even below the limit, declaring income lower than the presumptive rate (while income exceeds the basic exemption) can require an audit.
How to work out if it applies to you
Run through four checks for the year. First, add up your gross business turnover or professional receipts — this is the figure that matters, not profit. Second, if you’re in business near the ₹1 crore mark, work out what share of receipts and payments moved in cash; under 5% each lets you use the ₹10 crore limit. Third, if you opted for presumptive taxation, check whether you’re declaring at or above the deemed rate. Fourth, remember a loss year can still need an audit if turnover crosses the limit, or if you declare below presumptive while income exceeds the basic exemption. Salary, capital gains or house-property income on their own don’t attract Section 44AB. If you’re a partner, the firm’s turnover decides the firm’s audit, not yours personally. The safe step is to total the year’s receipts early — well before the September deadline — so there’s time to arrange the audit if it turns out to apply.