Does presumptive taxation exempt me from audit?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerIf you opt for presumptive taxation (44AD for business up to ₹2/₹3 crore, 44ADA for professionals up to ₹50/₹75 lakh) and declare income at or above the presumptive rate, you’re exempt from a tax audit. Declare lower while your income exceeds the basic exemption, and audit applies.

Presumptive means no audit

Declare the deemed rate (8%/6% for 44AD, 50% for 44ADA) and you skip the audit and detailed books.

Declaring lower triggers audit

If you show less than the presumptive rate and your income is above the basic exemption, you must maintain books and get audited. Confirm current limits.

Audit

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This answer is general information for businesses, not professional advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.