What is Tax Audit Applicability for Series A Startups?
Nexa Consultancy | Startup & Finance Glossary
Under Section 44AB of the Income Tax Act, a tax audit is mandatory if a business's turnover exceeds ₹1 crore (or ₹10 crore if most transactions are digital). Most Series A startups will cross this threshold.
Startup Example: A SaaS startup raises a Series A and its revenue grows to ₹12 crore in the financial year. It is now legally required to have its accounts audited by a CA and file a tax audit report with its income tax return.
Our compliance services manage the tax audit process seamlessly.