{"id":14704,"date":"2025-09-22T16:09:40","date_gmt":"2025-09-22T16:09:40","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/09\/22\/who-needs-a-tax-audit-ca-explains-rules-and-clarifies-itr-3-4-requirements-business-news\/"},"modified":"2025-09-22T16:09:40","modified_gmt":"2025-09-22T16:09:40","slug":"who-needs-a-tax-audit-ca-explains-rules-and-clarifies-itr-3-4-requirements-business-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/22\/who-needs-a-tax-audit-ca-explains-rules-and-clarifies-itr-3-4-requirements-business-news\/","title":{"rendered":"Who Needs A Tax Audit? CA Explains Rules And Clarifies ITR 3 & 4 Requirements | Business News"},"content":{"rendered":"


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A chartered accountant’s detailed explainer on tax audit regulations for business owners and professional income groups filing ITR 3 and ITR 4.<\/h2>\n
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Why the tax audit matters a great deal. (Representative image)<\/p>\n<\/figure>\n

Indian taxpayers filing their income tax returns under ITR-3 and ITR-4 often encounter confusion over tax audits. Such taxpayers, whether they are business owners or professionals, had their compliance issues clarified by a chartered accountant on Twitter. In a detailed explanatory post on Sunday, September 21, CA Nitin Kaushik broke down regulations regarding audit requirements, turnover thresholds and due dates.<\/p>\n

As taxpayers often misunderstand the distinction between the Financial Year (FY) and the Assessment Year (AY), Kaushik focused on it first up. \u201cFY 2024-25 runs from April 1, 2024, to March 31, 2025, while AY 2025-26 is when you actually file your ITR for that year,” the CA noted before providing information on the deadlines.<\/p>\n

For taxpayers filing the ITR-3 or ITR-4 without an audit, July 31 was the traditional deadline, which has now been extended to September 16 by the income tax department. \u201cWith Audit \u2192 30th Sept (ITR due by 31st Oct, can extend to 31st Dec with late fees),” explained Kaushik.<\/p>\n

Who Needs A Tax Audit<\/strong><\/p>\n

The tax audit applies only to business entities and professional income (PGBP), stressed Kaushik, while confirming it does not apply to income from salary, rent, capital gains, and\/or interest.<\/p>\n

The chartered accountant also provided a quick insight into the business turnover limits set by tax authorities for audits. For businesses with a turnover exceeding Rs 1 crore, the audit is mandatory. Under presumptive taxation (Sec 44AD), turnover of up to Rs 2 crore is made audit-free if the company declares profits of 6 to 8 per cent.<\/p>\n

Benefits are provided for digital transactions. In case more than 95 per cent of a company\u2019s transactions are digital, the audit-free limit is extended to Rs 3 crore. If a business operates completely on digital transactions, the limit further rises to Rs 10 crore.<\/p>\n

Also, a threshold of Rs 50 lakh has been set for doctors, engineers, lawyers, chartered accountants and other professionals, which rises to Rs 75 lakh in cases of 95 per cent or more digital transactions.<\/p>\n

Why Tax Audit Is Important<\/strong><\/p>\n

\u201cAn audit ensures that a CA certifies the books of accounts, profit & loss, and balance sheet, making sure income and expenses are accurately reported,” Kaushik wrote while also warning against complacency in maintaining books even as exemptions help taxpayers a great deal.<\/p>\n

\u201cDon\u2019t confuse tax saving with tax compliance. Compliance comes first, savings later.”<\/p>\n

A tax audit is mandatory for ITR-3 or ITR-4 filing, without which, the submission of income tax returns could be rendered invalid.<\/p>\n

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First Published:<\/span><\/p>\n
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September 22, 2025, 19:37 IST<\/p>\n<\/div>\n<\/div>\n

News<\/a> business<\/a> Who Needs A Tax Audit? CA Explains Rules And Clarifies ITR 3 & 4 Requirements<\/span><\/div>\n
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Last Updated:September 22, 2025, 19:37 IST A chartered accountant’s detailed explainer on tax audit regulations for business owners and professional income groups filing ITR 3 and ITR 4. Why the tax audit matters a great deal. (Representative image) Indian taxpayers filing their income tax returns under ITR-3 and ITR-4 often encounter confusion over tax audits….<\/p>\n","protected":false},"author":1,"featured_media":9213,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-14704","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/14704","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=14704"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/14704\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/9213"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=14704"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=14704"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=14704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}