If the gross receipts, sales turnover, or gross receipts exceed Rs 1 million in a financial year, a taxpayer must have their tax audit done. In certain circumstances, however, taxpayers may need to have their accounts audited.
As per Finance Act 2020: A threshold limit of Rs. 1 crore for a tax audit will be raised to Rs. 5 crore starting AY 2020-21 (FY2019-20), if cash receipts of taxpayers are not less than 5% of gross receipts or turnover and if cash payments of taxpayers are not more than 5% of aggregate payments.
As per Finance Act 2021: In case, cash transactions are not exceeding 5% of total transactions, the threshold limit for cash transactions is raised to Rs 5 crores from April 2021.