Tax Audit for different type of Business

Tax Audit of business by Chartered Accountant

As per the Income Tax Act,1961 in India certain types of businesses are mandatorily required to get tax audit done and maintain the book of accounts. Here, we look at the tax audit limit for different types of business entities in India and tax audit applicability.


Tax Audit Limit for Proprietorships

Proprietorship firms carrying on a profession with a gross receipts of more than Rs.50 lakhs must get tax audit done. Tax audit is mandatory for proprietorship firm doing business, if gorss sales turnover exceeds Rs.2 crores.


Specified profession under the Income Tax Act includes professions such as:

  1. Legal
  2. Medical
  3. Engineering
  4. Architectural
  5. Accountancy
  6. Technical Consultancy
  7. Interior Decoration
  8. Authorized Representative
  9. Film Artist


In case income of a proprietor from some business or profession (other than the above specified profession), maintenance of books of accounts is mandatory, if business or professional income exceeds Rs.2.5 lakhs in any one of the three preceding years.

In case of proprietorship firm, it is mandatory to maintain books of accounts, if total gross sales turnover or gross receipts exceed Rs.25 lakhs in any one of the three previous years.


Tax Audit Limit for Partnership Firms

Partnership is a profession firms is into profession with gross receipts of exceeding Rs.50 lakhs must get tax audit. Partnership firm is into business must get tax audit done, if gross sales turnover exceeds Rs.2 crores.

Partnership firms involved in carrying on a specified profession would be required to maintain book of accounts as per Income Tax Act, if gross receipts is more than Rs.1.5 lakhs in all three previous years.

Partnership firms is receiving income profession (other than specified profession), book of accounts must be maintained if income exceeds Rs.2.5 lakhs in any one of the three years previous year.

Partnership firms involved in carrying business, then maintenance of books of account is mandatory if total sales turnover or gross receipts exceed Rs.25 lakhs in any one of the three preceding years.


Tax Audit Limit for LLP

Tax Audit will be applicable if the annual turnover exceeds Rs. 2 Core, however as per LLP Act, LLP with an annual turnover of more than Rs.40 lakhs or capital contribution of Rs.25 lakhs are required to be audited by a Chartered Accountant. Maintenance of book of accounts is mandatory for LLP, irrespective of annual turnover.


Tax Audit Limit for Companies

Tax Audit as per Income Tax Act, will be applicable if the annual turnover exceeds Rs. 2 Core, However all types of companies including private limited company and one person company are required to get Audited by Chartered Accountant every year as per Companies Act, 2013 irrespective of annual turnover or capital. Also, maintenance of book of accounts is mandatory for companies, irrespective of annual turnover.


Companies having having tax liability as per MAT i.e. despite the company is in loss still have to pay income tax as per Minimum Ulternate Tax, have to obtain certificate fron Chartered Accountant for MAT calculation and get the form 29B Filed.

create company in india

What people say about us

We are very much satisfied with the services of eStart India team, they are the best in guiding to business startups. We have decided to give them complete management of our accounts and finance department as they have team qualified professionals CA's CS and Lawyers.

Company Incorporation india

Dr. Abhishek Dagar

Desgnated Partner, Gin n Tonic LLP

I was impressed by their immediate response to all my queries related to company registration and all time support they offer. I took their combined package which includes all legal registration (Company Reg., PAN, TAN, IEC, DVAT, RVAT, TM) was very beneficial for me.

Service Tax Registration India

Mr. Subham Sethi

Managing Director, Volt Technologies Pvt. Ltd.

Hats off to team !!! After getting my company registered from eStartIndia I realized In the era of technology distance not an issue for anything. I am so happy with their services. Got Company registration done, TM Registration, UPVAT & CST Registration, Drug License. I like their services and way of handling the customer.

Tds return last date

Dr. Quser Mehmood

Managing Director, Biophytes Healthcare Pvt. Ltd.

I do Business they do Compliances Being very much busy with my core business, rarely get time to compliance part but the eStartIndia teams keeps me updated compliance part. I have done my Company Registration, UPVAT & CST Registration with eStartindia online platform.

Roc filing

Mr. Saurabh Mishra

Managing Director, Vastragatha Apparels Pvt. Ltd.

The Response and service is best in class, I would say eStart India team is doing best for their clients. I specially liked the word Mr. Chauhan said U just focus on your business else will take care that gave me assurance that there is someone who is not only an advisor/consultant but a Business partner indeed, Their team is managing all my financial and leegal requirements.

copyright my book

Mr. Manish Vij

Managing Partner, Waaman International LLP

eStartIndia has helped us in incorporating my company and they have been very professional in handling all the matters. They know well what has to be done and how to deal with it, you can directly discuss all your concern with chartered accountant all the time. Appreciable

Private Limited company

Mr. Faisal Mahmood

Director, Adheen Healthcare Pvt. Ltd.

One of my friend referred about eStartIndia as he was satisfied their work, Irrespective of distance we our company registration got don very smoothly and timely. Thanks to eStartIndia team

company registration in india

Ms. Pardeshi Radhika Udaysingh

Director, Affection Garments Pvt. Ltd. Aurangabad

I appreciate their way of working, collecting all the needed information in one go, delivering on time they helped me getting all the necessary registrations and licenses.

VAT & CST Registration

Mr. Kulyash Mehta

Director, Faresclub Travel Pvt. Ltd. Delhi

I had lot of questions in my mind before starting my company, the have resolved all my queries and concerns professionally .

LLP Registration

Mr. Ajit Kumar

Director, Agitrus Fashion & Lifestyle Pvt. Ltd. Jharkhand

Best team of professionals to deal with, get your business registered and getting all compliances done .

Proprietorship firm registration

Mr. Arun Singh

Director, Corporate Heirarchy Solutions Pvt. Ltd. Gurgaon

Our True Partner !!!!
We liked their aggressiveness to deliver things on time, team of all professionals helped us to get our company registered, in routine compliances and business as well.

Producer company create

Mr. Vikas Bakshi & Mr. Amit Arora

Managing Director, SBJ BPO Services Pvt. Ltd. Delhi
  • company registration india
  • Service Tax Registration india
  • Trademark registration
  • create company in india
  • company Incorporation
  • LLP Registration
  • Proprietorship firm registration
  • Producer company create