Who is required to undergo a tax audit?

In India, tax audits are conducted under the provisions of the Income Tax Act, 1961. As per the Act, a tax audit is mandatory for certain categories of taxpayers whose turnover or gross receipts exceed specified thresholds. As of my last update, here are the criteria for mandatory tax audit in India:

Businesses: Any person carrying on business is required to get their accounts audited if the total sales, turnover, or gross receipts in business exceed ₹1 crore in any previous year relevant to the assessment year.

Professionals: Professionals such as doctors, lawyers, architects, etc., are required to get their accounts audited if the gross receipts from the profession exceed ₹50 lakhs in any previous year relevant to the assessment year.

Presumptive Taxation Scheme: If a taxpayer opts for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE of the Income Tax Act, they are still required to get their accounts audited if the total income exceeds the maximum amount not chargeable to tax.

Others: Apart from the above, the Income Tax Act also mandates tax audit in certain other cases such as where the taxpayer claims deduction under Sections 10AA, 80H to 80RRB, etc.

It’s essential to keep in mind that these thresholds and provisions might change over time with amendments to tax laws or notifications by the government. Therefore, it’s advisable to refer to the latest provisions under the Income Tax Act or consult with a tax professional for the most up-to-date information regarding tax audits in India.