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CS Professional · Advanced Direct Tax Laws and Practice · Tax Audit

Under section 63(2) of the Income-tax Act, 2025, when do the tax audit provisions of that section not apply?

Section 63 does not apply where the profits and gains of the business or profession declared by the assessee are as per section 58(2) or 61(2). In that case no tax audit is needed, even if turnover is otherwise high.

  1. AWhen profits are declared as per section 58(2) or 61(2)Correct
  2. BWhen the assessee's turnover exceeds Rs 1 crore but is below Rs 10 crore
  3. CWhen the assessee is a professional with gross receipts above Rs 50 lakh
  4. DWhen the assessee's accounts are audited under another law

Explanation

Section 63(2) states that section 63 does not apply where the profits and gains declared by the assessee are as per section 58(2) or 61(2). Turnover or receipts above the limits would normally trigger audit, and an audit under another law is dealt with through section 63(4) compliance, not exclusion.

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