Tax Audit Criteria for Engineer 
The key criteria that determine whether an engineer is required to undergo a Tax Audit Report are as follows:
1. Gross receipts or turnover of the business:
If the gross receipts or turnover of the business exceeds Rs. 1 crore, then a tax audit is required.
2. Cash transactions:
If the cash receipts or payments of the business exceed 5% of the gross receipts or turnover, then a tax audit is not required.
However, if the cash receipts or payments exceed 10% of the gross receipts or turnover, then a tax audit is required.
3. Nature of business:
If the business is engaged in certain specified activities, such as construction, trading in shares, or real estate, then a tax audit is required even if the gross receipts or turnover do not exceed Rs. 1 crore.
4. Opting for presumptive taxation scheme:
If the business has opted for the presumptive taxation scheme under Section 44AD or Section 44AE of the Income Tax Act, then a tax audit is required if the total turnover exceeds Rs. 2 crores.
If an engineer is required to undergo a TAR, they must appoint a chartered accountant to conduct the audit. The chartered accountant will then prepare a Tax Audit Report, which will be submitted to the Income Tax Department.
Here are some additional things to keep in mind about tax audit for engineers:
- The due date for filing the TAR is 30th September of the following financial year.
- The TAR must be signed by the chartered accountant who conducted the audit.
- The TAR must be submitted to the Income Tax Department in Form 3CA or Form 3CB, depending on the nature of the business.
To visit: https://www.mca.gov.in/
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