For audit

Audit is compulsory. When income exceeds Rs.10 lakhs per year.

Audit is cumpulsory under section 44B of Income Tax India 1961 if your professional receipts exceeds 15 Lac (For last year it is 10 Lacs).

For your reference please read section 44AB:-

44AB. ²¹Every person,—

 (a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds ^21a[²²[sixty lakh rupees]] in any previous year ²³[***]; or

 (b) carrying on profession shall, if his gross receipts in profession exceed ^23a[²⁴[fifteen lakh rupees]] in any ²⁵[previous year; or

 (c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under ²⁶[section 44AE ] ²⁷[orsection 44BB or section 44BBB], as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any ²⁸[previous year; or]] ²⁹[***]

You can feel free to discuss in detail if needed at jsscompany2012@gmail.com

Regards

CA Jharna Saxena

B.COM, CA, CS

in any previous years gross recepts from profession exceeds 15 lakhs,then u/s 44 ab,tax audit is applicable

lic agent is a profession so tax audit applicable

Your Query:  "Audit is compulsory or not or this client go to business or profession category or other sources of income cetagory", ie; whether the insurance agency is a business, or profession, or any other activity so as to come under 'Other Sources'

Reply: It is not a 'profession' as no professional knowledge is required to be exercised.

Whether it is a 'business' or any other activity cfalling under Other Sources, is very much debatable.

However it is returned/assessed as 'business'.