Archive · 22 Sep 2025
CA Clarifies Tax Audit Rules for ITR 3 & 4 Filers
A chartered accountant clarified tax audit rules for people filing ITR-3 and ITR-4 forms.
If you own a business, an audit is needed if your income is more than a certain amount.
For businesses, an audit is generally required if the turnover exceeds Rs 1 crore.
However, there are exceptions based on how many transactions are digital.
For professionals like doctors and lawyers, an audit is required if their income exceeds Rs 50 lakh, which extends to Rs 75 lakh if they do most of their transactions digitally.
Filing dates are July 31st, but this has been extended to September 16th for 2025.
If an audit is required, the deadline is October 31st, 2025.
CA Nitin Kaushik explained tax audit regulations for ITR-3 and ITR-4 filers.
Tax audits apply to business and professional income (PGBP), not salary, rent, or capital gains.
Businesses with turnover over Rs 1 crore need an audit, under presumptive taxation up to Rs 2 crore turnover is audit-free.
Audit-free thresholds are extended for digital transactions.
Tax audit ensures accurate reporting of income and expenses.
- Who
- CA Nitin Kaushik
- What
- Explained tax audit rules for ITR 3 & 4
- When
- September 21, 2025 (Twitter post)
- Where
- N/A
- Why
- To clarify audit requirements for business owners and professionals.
- ITR Forms
- ITR-3 and ITR-4
- Tax Audit Trigger
- Businesses exceeding Rs 1 crore turnover, Professionals exceeding Rs 50 lakh turnover
- Audit-Free (Businesses)
- Up to Rs 2 crore turnover (Sec 44AD) with 6-8% profit declared, up to Rs 3 crore (95% digital transactions), up to Rs 10 crore (fully digital transactions)
- Audit-Free (Professionals)
- Rs 75 lakh (95% or more digital transactions)
- FY/AY
- FY 2024-25 (April 1, 2024 - March 31, 2025), AY 2025-26 (ITR Filing)
- Due Dates (without audit)
- September 16, 2025 (extended)
- Due Dates (with audit)
- October 31, 2025 (can extend to December 31st with fees)
