Accounting And Audit 20 October 2026
Tax Audit Rules for FY 2026-27: ₹1 Crore Turnover Threshold
The Finance Ministry mandates a tax audit under Section 44AB for any business with turnover exceeding ₹1 crore in assessment year 2026‑27. Firms must complete the audit by the filing deadline, maintain proper books, and submit audited returns to avoid penalties. Non‑compliance can attract heavy fines and legal scrutiny.
Businesses with turnover above ₹1 crore in AY 2026‑27 must undergo a tax audit under Section 44AB. The deadline aligns with the regular income‑tax filing date. Refer to the Tax Audit Guide for detailed steps.
- Audit must be performed by a chartered accountant.
- Maintain detailed books of account and supporting documents.
- Submit audited return (ITR‑3/ITR‑4) before the due date.
- Failure can lead to penalties up to 0.5% of turnover per month.
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