Does the business need a tax audit this year? Enter the turnover and
whether cash stayed within the limit — the checker gives the
answer and the reason, using the same rule as the desktop app’s
Form 3CD extract.
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All calculations happen in your browser — nothing is sent
Cash receipts and cash payments — each within 5% of the total?
Rules this checker applies
Up to ₹1 crore: no audit on
turnover alone.
Above ₹10 crore: audit
applies, whatever the cash.
In between: audit applies unless cash receipts are within
5% of all receipts and cash
payments are within 5% of all
payments. Cheques and drafts that are not account-payee count as
cash.
When the answer can still be “yes” below the limit
A business that was on presumptive taxation (44AD) and declares profit
below the presumptive rate, with income above the basic exemption,
can need an audit even with a small turnover. Professionals have
their own limit of ₹50 lakh
of gross receipts. These depend on facts outside the turnover, so the
checker does not decide them — the CA does.
What this checker does not do
It does not work out the turnover or the cash percentage for you — the desktop app reads them from the trial balance and cash ledger.
From FY 2026‑27 the Income-tax Act 2025 applies and the audit section and report form have new numbers. The limits here are unchanged from the old Act — confirm the new numbering.