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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.

Check this for your businessThe Compliance module

Information, not legal advice. Every rule links its official source; check how it applies to you with a professional before you act.

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.

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.

Triggers (applicability conditions)

Compliance radar in LuckPanda checks these conditions against a business profile to decide whether this rule applies.

  • annual_turnover>=10000000

Deadlines and penalty

Cadence
Every year · Annual renewal
Next due
Later Next due 30 Sept 2027 (in 354 days)
Penalty for default
Sec 271B: penalty up to 0.5% of turnover or Rs 1,50,000 (whichever lower) for missing tax audit.

The next date is worked out from today (India time) and the rule's statutory schedule; extensions notified by the government are not reflected.

Citations

Income Tax Audit (Sec 44AB) and TDS on Salaries by state