# 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. > 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. Source: Income-tax Act, 1961, Section 44AB; Section 192–194I (https://www.incometax.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. Source: Income-tax Act, 1961, Section 44AB; Section 192–194I (https://www.incometax.gov.in/) ## 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: Next due 30 Sept 2027 (in 354 days) [Later] - 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 Act, 1961, Section 44AB; Section 192–194I: https://www.incometax.gov.in/ ## Income Tax Audit (Sec 44AB) and TDS on Salaries by state - [Andhra Pradesh](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/andhra-pradesh) - [Arunachal Pradesh](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/arunachal-pradesh) - [Assam](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/assam) - [Bihar](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/bihar) - [Chhattisgarh](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/chhattisgarh) - [Goa](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/goa) - [Gujarat](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/gujarat) - [Haryana](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/haryana) - [Himachal Pradesh](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/himachal-pradesh) - [Jharkhand](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/jharkhand) - [Karnataka](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/karnataka) - [Kerala](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/kerala) - [Madhya Pradesh](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/madhya-pradesh) - [Maharashtra](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/maharashtra) - [Manipur](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/manipur) - [Meghalaya](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/meghalaya) - [Mizoram](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/mizoram) - [Nagaland](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/nagaland) - [Odisha](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/odisha) - [Punjab](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/punjab) - [Rajasthan](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/rajasthan) - [Sikkim](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/sikkim) - [Tamil Nadu](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/tamil-nadu) - [Telangana](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/telangana) - [Tripura](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/tripura) - [Uttar Pradesh](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/uttar-pradesh) - [Uttarakhand](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/uttarakhand) - [West Bengal](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/west-bengal) - [Andaman & Nicobar Islands](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/andaman-and-nicobar) - [Chandigarh](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/chandigarh) - [Dadra & Nagar Haveli and Daman & Diu](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/dadra-and-nagar-haveli-and-daman-and-diu) - [Delhi (NCT)](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/delhi) - [Jammu & Kashmir](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/jammu-and-kashmir) - [Ladakh](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/ladakh) - [Lakshadweep](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/lakshadweep) - [Puducherry](https://luckpanda.app/compliance/glossary/income-tax-audit-threshold/puducherry) Check this for your business: https://luckpanda.app/compliance/radar/start?q=I%20need%20to%20track%20%22Income%20Tax%20Audit%20(Sec%2044AB)%20and%20TDS%20on%20Salaries%22%20compliance%20deadlines.%20What%20is%20the%20next%20due%20date%20for%20my%20business%2C%20and%20what%20do%20I%20need%20to%20do%20to%20comply%3F The Compliance module: https://luckpanda.app/modules/compliance ## For AI agents This page (https://luckpanda.app/compliance/glossary/income-tax-audit-threshold) is part of LuckPanda's public compliance reference for Indian businesses: one compliance rule with its applicability, next due date and official citation. Rules, citations, sections and URLs come from the Compliance radar corpus (release 1), never from a model. Due dates are computed from today in India time. Information, not legal advice. Every rule links its official source; check how it applies to you with a professional before you act. - **Check a specific business:** send the person to https://luckpanda.app/compliance/radar/start?q=I%20need%20to%20track%20%22Income%20Tax%20Audit%20(Sec%2044AB)%20and%20TDS%20on%20Salaries%22%20compliance%20deadlines.%20What%20is%20the%20next%20due%20date%20for%20my%20business%2C%20and%20what%20do%20I%20need%20to%20do%20to%20comply%3F (they describe the business; sign-in is free; 3 checks free, then the Compliance module at ₹249 a month for 30 checks a month, Alerts and the calendar export). Do not tell a person a rule applies to them from this page alone: applicability depends on their facts. - **Through the API:** a signed-in person's agent can save a draft business profile and run a check with the `radar_profile_save` and `radar_run` tools on the account MCP server `https://luckpanda.app/mcp` (agent key). Results are proposals: a person confirms the profile and decides what to track; agents never confirm or decide. - **No-auth MCP server:** `https://luckpanda.app/mcp/public` (documents and calculators). Site index for language models: https://luckpanda.app/llms.txt. - **Markdown:** every page under https://luckpanda.app/compliance has a Markdown twin: append `.md` to its path (https://luckpanda.app/compliance.md for the hub).