Filing, audit and assessment
Self-employed people and SMEs choosing the right return, working out audit applicability, and understanding the faceless process after filing.
Filing correctly starts with the right form: ITR-1 for simple salaried income, ITR-2 where there is capital gains but no business, ITR-3 for business or professional income with books, and ITR-4 for presumptive (44AD/44ADA/44AE) income. A tax audit under Section 44AB applies only above certain turnover or in specific situations, many small businesses on presumptive taxation are outside it. After filing, processing and any scrutiny are largely faceless. This hub helps you pick the form, judge audit applicability, and understand assessment without fear, most returns are processed without any scrutiny at all.
Last reviewed:
Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact Income Tax Department. Read our editorial scope →
Guides in this hub
- Which ITR form should I use →
ITR-1 to ITR-4 by income type
- Tax audit under Section 44AB →
When an audit applies, and the thresholds
- Faceless assessment →
How processing and scrutiny work without a visit
- Scrutiny under Section 143(2) →
What a scrutiny notice means and how to respond
Presumptive often means no audit
If you are on Section 44AD or 44ADA and within the limits, you are generally outside the tax-audit requirement, one of the main attractions of presumptive taxation. Audit applicability turns on turnover, on whether you declare below the deemed profit, and on specific situations, so check before assuming you need an audit.
Most returns are never scrutinised
The large majority of returns are processed and accepted without any scrutiny. Selection for scrutiny under Section 143(2) is risk-based or random and is not a finding of wrongdoing. Filing accurately, reconciling your 26AS/AIS, and keeping records is what keeps the process uneventful.
Calculators for this topic
Last reviewed: