Key facts
- Business — general
- ₹1 crore turnover
- Business — digital
- ₹10 crore (if cash ≤ 5%)
- Profession
- ₹50 lakh receipts
- Form
- 3CA-3CD (audited under other law) / 3CB-3CD
- Due date
- 30 September
Tax audit under Section 44AB is triggered when business turnover exceeds ₹1 crore in a financial year. The Finance Act 2020 raised this to ₹10 crore if aggregate cash receipts and cash payments do not exceed 5% of total receipts and total payments respectively. This makes digital-first businesses largely audit-free up to ₹10 crore.
Professionals (CAs, doctors, lawyers, engineers, interior designers etc.) face audit at ₹50 lakh of gross receipts (₹75 lakh from FY 2024-25 if cash receipts ≤ 5%).
Forms: 3CA + 3CD where statutory audit already applies (companies, LLPs over the audit threshold); 3CB + 3CD otherwise. Penalty under Section 271B is 0.5% of turnover, capped at ₹1,50,000.
Presumptive taxpayers exiting 44AD/44ADA and declaring lower-than-presumed income are also pulled into audit if their income exceeds the basic exemption.
FAQs
Are share-trading turnovers calculated differently?
Yes. For derivatives (F&O), turnover = absolute sum of profits and losses + premium on options. Intraday equity turnover = absolute differences. Delivery-based equity uses gross sale value.
Can I revise Form 3CD after filing?
Yes, until the tax audit due date (typically 30 September). After that, revisions are only possible if accounts are revised under the relevant law (e.g., Companies Act re-audit).
Last updated: 30 May 2026