Tax audit
Section 63(1) of Income Tax Act 2025
(1) Every person, carrying on the business or profession fulfilling the conditions specified in column B of the Table below, shall get his accounts of the tax year audited by an accountant, before the specified date.
Table
| Sl. No. | Conditions for getting books of account audited |
|---|---|
| A | B |
| 1 | Where the total sales, turnover or gross receipts from business or profession during the tax year of any person who–– (a) is carrying on business and at least 95% of aggregate of all the receipts and payments from the business during the tax year are through specified banking or online mode, is more than ₹10,00,00,000; (b) is carrying on business and not covered under serial number 1, is more than ₹1,00,00,000; (c) is carrying on profession, is more than ₹50,00,000. |
| 2 | If the person is carrying on business or profession, referred to in section 58(2) or 61(2) (other than that referred to in section 61(2) [Table: Sl. No. 6]) and the profits and gains from such business or profession are claimed to be lower than the deemed profits as referred to in these sections. |
Section 63(2) of Income Tax Act 2025
(2) The provisions of this section shall not apply,––
(a) where profits and gains of business or profession, declared by the assessee are as per section 58(2);
(b) where the person, other than that referred in section 61(2) (Table: Sl. No. 6), is deriving income of the nature referred to in section 61(2).
Section 63(3) of Income Tax Act 2025
(3) The assessee shall furnish by the specified date, the report of such audit in such form, duly signed and verified by the accountant and setting forth such particulars, as prescribed.
Section 63(4) of Income Tax Act 2025
(4) Where a person is required, by or under any other law, to get his accounts audited, then it shall be sufficient compliance of this section, if such person––
(a) gets the accounts of such business or profession audited under such law before the specified date; and
(b) furnishes by that specified date the report of such audit along with the report of the accountant in the form as prescribed.
Section 63(5) of Income Tax Act 2025
(5) In this section, “specified date” in relation to the accounts of the assessee of the tax year, means the date one month prior to the due date for furnishing the return of income under section 263(1).