TuriaToolkit

Tax Audit Sec 44AB & Presumptive Applicability Wizard

Sec 44AB / 44AD / 44ADA₹10 Cr Cash Test

Determine mandatory Tax Audit applicability, validate the 5% cash receipts/payments test, and identify the correct ITR Form.

1. Taxpayer Classification

2. Turnover, Receipts & 5% Cash Test

3.33% of total receipts
3.16% of total payments
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Statutory & Compliance Disclaimer

This tool is an automated calculation, formatting, and compliance aid provided for informational purposes only. It does not constitute formal legal, taxation, or professional auditing advice. Calculations, citations, and draft documents must be independently verified by a qualified Chartered Accountant (CA) or Company Secretary (CS) against statutory provisions and applicable ICAI/ICSI guidelines before execution or certification.

Tax Audit Verdict (Sec 44AB)

TAX AUDIT IS NOT MANDATORY (AUDIT EXEMPT)

Turnover is within the ₹10 Crore threshold (qualifies for the 5% cash concession). If eligible, the taxpayer can opt for presumptive taxation u/s 44AD or maintain books without mandatory Tax Audit.

Recommended ITR Form

ITR-3

Cash Receipts Proportion

3.33%

✓ Satisfies ≤ 5% statutory limit

Cash Payments Proportion

3.16%

✓ Satisfies ≤ 5% statutory limit

Tax Audit Applicability & Presumptive Taxation Memorandum

Income-tax Act, 1961 | Sections 44AB, 44AD & 44ADA | Assessment Year 2025-26

1. Gross Turnover / Receipts₹4,50,00,000
2. Statutory Audit Threshold Applicable₹10,00,00,000
3. Cash Receipts Ratio3.33%
4. Cash Payments Ratio3.16%
5. Declared Net Profit₹32,00,000
Final Status: Tax Audit Required u/s 44AB?NO (EXEMPT)
Statutory Note: Where Tax Audit is mandatory under Section 44AB, the audit report in Form 3CA/3CB along with statement of particulars in Form 3CD must be filed electronically on or before 30th September of the assessment year (or 31st October if transfer pricing u/s 92E applies). Failure to comply attracts a penalty under Section 271B of 0.5% of total sales/turnover or ₹1,50,000, whichever is less.