Tax audit is an additional compliance to be done apart from filing of the income tax return in case of certain situations and persons only. As per the Income-tax Act 1961, it is obligatory of the following persons (carrying on business or profession) to get his/ her accounts audited under section 44AB by a Chartered Accountant: If the total sales, turnover or gross receipts in business exceeds Rs. 200 lakhs (in case of individuals/ partnerships) or Rs. 100 lakhs (in case of Companies); or If the gross receipts in profession exceeds Rs. 50 lakhs in any of the previous years; or If the assessee covered under the provision of section 44AD claims his profits to be lower than the profits deemed under presumptive basis and his income exceeds the basic exemption limit; or If the assessee carrying on a profession under section 44AA (like a doctor, lawyer, CA, technical/ software/ business consultant , photographer etc) covered under the provision of section 44ADA claims his profits to be low