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CS Executive · Tax Laws and Practice · Procedural Compliance under Income Tax

Ms. Kavya Nair, a consultant, earns gross receipts of Rs 62 lakh from her profession in the tax year. Which statement about tax audit under section 63 of the Income-tax Act, 2025 is correct?

Audit is required because for a person carrying on profession, section 63 applies when gross receipts exceed fifty lakh rupees. Her receipts of Rs 62 lakh exceed that limit. The one crore and ten crore limits apply only to business.

  1. AAudit is not required because the profession limit is one crore rupees
  2. BAudit is required because gross receipts exceed fifty lakh rupeesCorrect
  3. CAudit is not required because the ten crore rupee limit applies to professionals
  4. DAudit is required only if she also carries on business

Explanation

The Table sets the limit for a person carrying on profession at gross receipts exceeding fifty lakh rupees. Rs 62 lakh exceeds this, so audit applies. The one crore and ten crore limits relate to business, and the ten crore enhancement is not available to professionals.

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