A tax audit is a formal review of financial accounts and records, mandated under specific Income Tax Act provisions once certain turnover thresholds (and in some cases, profit margin relative to turnover) are met. Exact thresholds can change through Union Budget announcements — always verify current figures through official sources or a qualified tax professional.
Related Reading
See how turnover calculation connects to audit thresholds in Turnover, Tax Audit, and ITR Filing for F&O Traders.