If any taxpayer who is required to get tax audit done but fails to do so, lower of 0.5% of total sales, turnover or gross receipts or Rs 1,50,000 may be levied as penalty.

Proprietorship firms are taxed as individuals under Income Tax act. Hence, in case of a proprietor running a business, tax audit is mandatory, if sales turnover exceeds Rs.1 crores. If an individual is carrying on a profession with a gross receipts of more than Rs.50 lakhs, then tax audit is mandatory

A tax audit is an accounting procedure where the IRS examines your individual or business financial records to ensure you filed your tax return accurately.

A tax audit is an examination of your tax return by the IRS to verify that your income and deductions are accurate. A tax audit is when the IRS decides to examine your tax return a little more closely and verify that your income and deductions are accurate