Tax audits scrutinize financial records for accuracy and compliance, crucial for businesses.
Applicability varies: turnover exceeding INR 1 crore mandates audits, but digital transactions may raise this limit to INR 10 crores.
Professions see audits if gross receipts surpass INR 50 lakhs, or if opting out of presumptive schemes.
For traders, turnover above INR 10 crores warrants audits due to digital transactions.
Presumptive schemes offer relief, but opting out early may trigger audits if income surpasses exemptions.
Chartered accountants file digitally signed Form 3CB-3CD by 30th September, with ITRs due by 31st October.
Penalties for non-compliance include 0.5% of total sales/turnover or INR 1,50,000, unless valid reasons are provided.