18/11/2025
🔍 **Tax Audit vs Company Audit – Do You Really Know the Difference?**
Many business owners, professionals, and even startups get confused about which audit applies to them. Here’s a quick and easy breakdown 👇
# # # ✅ **Tax Audit (Section 44AB) – When is it needed?**
You *must* do a tax audit if:
• Your **business turnover is above ₹1 crore**
• You’re under **presumptive taxation (44AD)** and turnover **exceeds ₹2 crore**
• You are a **professional** (doctor, lawyer, architect, etc.) earning **more than ₹50 lakh**
• You declare **lower income** than presumptive rates (44AD/44ADA)
If you’re below these limits, a tax audit is not required.
# # # 🏢 **Company Audit (Companies Act)**
• **Every company**, big or small, must do a **statutory audit** every year
• For Income Tax:
– Tax audit applies if turnover **exceeds ₹1 crore**
– Presumptive cases allowed up to **₹2 crore**
# # # 🙏 **Trust Audit**
• Trusts/NGOs must do an audit if total income is **above ₹2.5 lakh** (before exemptions)
📌 **Why this matters?**
Staying compliant avoids penalties, builds trust, and keeps your finances clean.
Not sure if these apply to you? Talk to a CA before year-end! ✔️
👍 Follow for more simple and helpful tax updates! -- do check out our website : https://aaveecohort.com/tax-audit-and-company-audit-slab-and-criteria-under-income-tax
