Tax Audit Applicability Calculator

Whether section 44AB applies, including the cash condition.

Enter turnover and your cash receipts and payments. Both sides are tested, because the higher threshold depends on both.

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Opted for section 44AD
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The cash condition catches people out

The higher business threshold applies only where cash receipts stay within 5% of turnover and cash payments stay within 5% of total payments. Businesses that check only the receipts side find themselves over the limit they thought they had cleared.

Audit without crossing turnover

Declaring profit below the presumptive rate while remaining under section 44AD triggers audit regardless of turnover. So does exiting a presumptive scheme in certain circumstances.

Deadlines and penalty

The audit report is due before the return, and the penalty under section 271B is 0.5% of turnover capped at ₹1,50,000. It is levied on the assessee, not the auditor.

Frequently asked questions

Is turnover the same as gross receipts?
For this purpose, broadly yes, but the treatment of GST, discounts and returns matters. The ICAI guidance note on turnover is the working reference.
Does a loss mean no audit?
No. Applicability turns on turnover and on the presumptive tests, not on whether there is a profit.
Do bank transfers count as cash for the 5% test?
No. The test is about cash and bearer instruments. Account payee cheques, drafts and electronic transfers are outside it.