Startup Audit Exemption Eligibility Checker
Find out whether your startup needs a statutory audit, tax audit, or both — based on entity type, turnover, and DPIIT recognition status.
Mandatory for ALL companies regardless of turnover or size.
Cash receipts/payments > 5% → standard ₹1 Cr threshold applies. Turnover ₹0.5 Cr is within limit.
Based on Companies Act 2013, LLP Act 2008, and Income Tax Act 1961 (Section 44AB) as amended for FY 2024-25. Thresholds may change — verify at incometax.gov.in. Consult a CA for entity-specific advice.
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Frequently asked questions
Is a private limited company always required to get a statutory audit?
Yes. Every company incorporated under the Companies Act 2013 must get its accounts audited by a Chartered Accountant, regardless of turnover or size. There is no turnover-based exemption for statutory audit for companies — the exemption only applies to the tax audit under the Income Tax Act.
What is the tax audit threshold for a startup with business income?
For businesses, tax audit under Section 44AB is mandatory if turnover exceeds ₹1 crore in a financial year. However, if cash receipts and cash payments are each below 5% of total receipts/payments, the threshold is raised to ₹10 crore.
Do DPIIT-recognised startups get any audit exemption?
DPIIT-recognised startups can self-certify compliance with 6 labour laws for up to 5 years from incorporation, removing mandatory inspection risk. There is no blanket exemption from statutory or tax audit solely due to DPIIT recognition — audit exemptions are governed by entity type and turnover.
What is the tax audit threshold for an LLP with professional income?
An LLP providing professional services must get a tax audit if gross receipts exceed ₹50 lakh. For non-professional LLPs, the ₹1 crore (or ₹10 crore for digital transactions) business threshold applies.
Does an LLP always need a statutory audit?
An LLP requires a statutory audit under the LLP Act only if its annual turnover exceeds ₹40 lakh or the contribution exceeds ₹25 lakh. Below these thresholds, a statutory audit is not mandatory for LLPs (unlike companies).