# Tax Audit [Section 44AB]
Tax audit is a mandatory audit by a Chartered Accountant of the books of accounts of an assessee. It applies in the cases set out below.
## When Tax Audit is Compulsory
### (i) Business
- General rule: Turnover exceeds ₹1 crore in the P.Y.
- Enhanced limit of ₹10 crore applies if BOTH conditions are met:
- Aggregate cash receipts (incl. bearer/crossed cheques) ≤ 5% of total receipts; AND
- Aggregate cash payments (incl. bearer/crossed cheques) ≤ 5% of total payments.
Intuition: the higher ₹10 crore limit rewards businesses that are largely digital/banking-channel.
### (ii) Profession
- Gross receipts exceed ₹50 lacs during the P.Y.
### (iii) Presumptive Schemes (44AD / 44ADA)
Tax audit required if the assessee:
- declares less than 8% / 6% (44AD) or 50% (44ADA) of turnover/gross receipts as income; AND
- total income exceeds the basic exemption limit.
### (iv) Section 44AE
Tax audit required if income declared is less than the deemed profit under section 44AE.
## Procedural Points
| Item | Detail |
|---|---|
| Who can audit | Chartered Accountant only |
| Forms | Form 3CA / 3CB / 3CD |
| Due date for audit report | 1 month prior to the due date of filing ROI u/s 139(1) |
## Due Dates Summary
| Case | ROI Due Date | Tax Audit Report Due Date |
|---|---|---|
| Normal Tax Audit | 31st October of A.Y. | 30th September of A.Y. |
| Transfer Pricing | 30th November of A.Y. | 31st October of A.Y. |
| Other (no tax audit) | 31st July of A.Y. | — |