It is obligatory for the persons mentioned below, carrying  on business or profession, to get his accounts audited before the "specified  date " by a Charted Accountant

1. An Assessee carrying on business

Condition: Total sales, turnover or gross-receipts of business for the previous year exceeds  1 crore.

Exception 1: Where a person:

       • Declares profits and gains for the previous year u/s 44AD; and

       • His total sales / turnover / gross receipts in business does not exceed  Rs 2 crore in the previous year,

- then, the provision of tax audit is not applicable.

Exception 2: If the following conditions are satisfies , then the higher threshold limit of Rs 5 crore shall be applicable for the person carrying on business:

a) aggregate of all amounts received including amount received for sales, turnover or gross receipts during the previous year, in cash, does not exceeds 5% of the said amount; and 

b) aggregate of all payments made including amount incurred for expenditure, in cash, during the previous year does not exceed 5% of the said payment.

2. An Assessee carrying on profession

 Condition: Gross receipts of profession for the previous year exceeds Rs 50 Lacs.

3. An Assessee covered u/s 44AE, 44BB or 44BBB

 Condition: Assessee has claimed that his income from such business is lower than the deemed income computed in accordance with the respective section.

4. An Assessee covered u/s 44AADA

 Condition: Assessee has claimed that:

     a) His income is lower than presumptive income(computed u/s 44ADA);and

     b)His income exceeds the maximum amount which is not chargeable to income-tax(i.e. basic exemption limit)

5. An Assessee covered u/s 44AD(4) and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year.