Tax Audit is mandatory under section 44AB of Income Tax Act, 1961 to following “Person”
Person Carrying Business: Total Sales, Turnover or Gross Receipt exceeds Rs. 1 Crores (*However from FY 2016-17 person can opt for presumptive income of 8% or Higher percentage if his total sales or turnover is not more than Rs. 2 Crores, in that case Tax Audit will not be applicable. Further if person conducting business, receives payment digitally then for such transactions, profit can be presumed as 6%. Applicable from FY 2016-17 onwards)
Person Carrying Profession: Gross Receipts Exceed Rs. 25 Lakhs. (*However from FY 2016-17 person can opt for presumptive income of 50% of higher if his gross receipts is not more than 50 Lakhs. If any person opts for Presumptive Income then he is not liable for tax audit) If a person carrying Business and profession shows profit less than the rate of presumptive percentage then too he is liable to get his books audited. *Please note: Presumptive Income under Section 44AD and Section 44ADA is applicable only to Resident individual, HUF and Partnership firm (Excluding LLP). Due Date of Filing Tax Audit Report is 30th September Every year.