Which SBR businesses need a tax audit for FY 2025-26 — and when?
A business needs an audit under Section 44AB when turnover crosses ₹1 crore, or ₹10 crore if cash receipts and cash payments are each within 5% of the total — which is where most SBR corporate offices and showrooms sit. A profession (a law or architecture firm on SBR, for instance) is audited above ₹50 lakh of gross receipts. The audit report in Form 3CA or 3CB with the 3CD annexure is due 30 September 2026 and the audited return itself by 31 October. Missing the report costs the lower of 0.5% of turnover or ₹1.5 lakh under Section 271B. We start SBR audits in July so the September rush is reconciliation, not discovery.
Tax audit limits under 44AB