When Is Tax Audit Compulsory Under Section 44AB

When Is Tax Audit Compulsory Under Section 44AB?

A tax audit is the inspection of the books of accounts of a firm or entity that runs a business or profession. The audits are done to ensure the company or the professional has reported their income, profit or loss and other financial information correctly. Further, the aim is to ensure the business is complying with the law. Section 44AB of the Income Tax Act requires a tax audit for some types of taxpayers if their turnover or gross receipts cross a specified limit. Let us understand when the taxpayers are required for a compulsory audit under section 44AB.