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Tax Audit under Income Tax Act is applicable to businesses whose annual turnover is Rs. 1 crore or more and to professionals such as doctors, chartered accountants, advocates whose annual fees are Rs. 25 Lacs or more. Last date for submission of Tax Audit Report to Government is 30 September each year.
In case of companies, as audit under the Companies Act is already done, tax audit is a quick process. However, in case of partnerships (including LLP's) or proprietorships, complete audit needs to be done as a part of tax audit, which takes much longer time.
Turnover limit for tax audit is sought to be increased to Rs. 2 crores for businesses and to Rs. 50 Lacs for professionals in the present budget. But, this has still not become a law though it has been passed in the parliament. Also, the increased limits will be applicable from financial year (FY) 2016-17 onwards. For FY 2015-16, lower turnover limits mentioned in the first paragraph are applicable.