TAX AUDIT

Professional preparation, reporting, and submission of tax audit reports under Section 44AB of the Income Tax Act.

Get Free Consultation

What is a Tax Audit?

A Tax Audit is a comprehensive review of a business's books of account, transactions, and tax filings to ensure compliance with the requirements of Section 44AB of the Income Tax Act, 1961. Conducted by qualified Chartered Accountants, it verifies the accuracy of declared income, expenses, deductions, and tax liabilities, culminating in the submission of Form 3CA/3CB and Form 3CD.

Key Benefits

  • Income Tax Compliance: Fully complies with Section 44AB mandates, eliminating potential penal consequences and scrutiny.
  • Accurate Financials: Ensures all books of accounts, deductions, and claims are checked and verified for total accuracy.
  • Identifies Tax Savings: Discovers legally permissible tax deductions, credits, and exemptions to optimize tax liability.
  • Scrutiny Risk Mitigation: Significantly reduces the risk of income tax notices, scrutiny audits, and administrative disputes.

Frequently Asked Questions

Tax Audit under Section 44AB is mandatory for businesses with turnover exceeding Rs. 1 crore (Rs. 10 crore if cash transactions are below 5%) and professionals with gross receipts exceeding Rs. 50 lakh in a financial year.
The Tax Audit report (Form 3CA/3CB and 3CD) must be uploaded before the ITR filing due date, typically September 30 each year (subject to CBDT extensions). Late filing attracts a penalty of 0.5% of turnover or Rs. 1.5 lakh, whichever is lower.
Form 3CD is a 44-clause statement covering details like turnover, depreciation, TDS defaults, disallowed expenses, related-party transactions, and cash transactions above Rs. 20,000. Accurate preparation requires specialist CA knowledge.
Only a practising Chartered Accountant (CA) can conduct a Tax Audit. A CA can conduct a maximum of 60 tax audit assignments per year. Our experienced team ensures timely, accurate, and fully compliant audit reports every year.
The penalty under Section 271B is 0.5% of total sales/turnover or Rs. 1,50,000, whichever is lower. No penalty is imposed if the taxpayer had a reasonable cause for delay, such as a natural calamity or serious illness of the auditor.