Businesses and professionals in India need to closely scrutinise both turnover and the nature of transactions as new audit obligations come into force in 2026, with thresholds adjusted based on cash dealings.
Indian businesses and professionals facing audit obligations in 2026 need to watch both turnover and transaction mix closely, because the filing rules remain tied not just to size but also to how much of the business is conducted in cash. Under Section 44AB, a tax audit is generally required when a business’s turnover exceeds ₹1 crore, though the threshold can rise to ₹10 crore where cash receipts and cash payments each stay within 5% of total transactions, according to guidance from the Income Tax Department and tax advisory sites. Professionals such as doctors, lawyers, engineers and accountants are generally brought into audit if gross receipts cross ₹50 lakh.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
