Central regulation
Income Tax Audit (Sec 44AB) and TDS on Salaries
Tax audit applies if business turnover crosses Rs 1 Cr (or Rs 10 Cr if cash receipts/payments are <5% of total). TDS on salaries (Sec 192), contractor payments (194C) and rent (194I) flow monthly to TRACES. Audit report due 30 September each year.
Definition
Tax audit applies if business turnover crosses Rs 1 Cr (or Rs 10 Cr if cash receipts/payments are <5% of total). TDS on salaries (Sec 192), contractor payments (194C) and rent (194I) flow monthly to TRACES. Audit report due 30 September each year.
- SourceIncome-tax Act, 1961 — Section 44AB; Section 192–194Iincometax.gov.in
What it means in practice
Income Tax Audit (Sec 44AB) and TDS on Salaries is administered by Income Tax Department / CBDT. The obligation is grounded in Income-tax Act, 1961 (Section 44AB; Section 192–194I).
Demo turnover Rs 3 Cr clears the Rs 1 Cr threshold easily.
- SourceIncome-tax Act, 1961 — Section 44AB; Section 192–194Iincometax.gov.in
Triggers (applicability predicates)
These predicates are evaluated by Compliance Radar's applicability engine against a business profile to decide whether this rule applies.
annual_turnover>=10000000
Deadlines and penalty
Cadence: annual — next action: 2026-09-30
Penalty for default: Sec 271B: penalty up to 0.5% of turnover or Rs 1,50,000 (whichever lower) for missing tax audit.
Citations
- SourceIncome-tax Act, 1961 — Section 44AB; Section 192–194Iincometax.gov.in