Income Tax Audit

Ensure 100% Compliance & Transparency with Expert Tax Audit Services

An Income Tax Audit is a detailed examination of a taxpayer’s accounts by a Chartered Accountant (CA) as per the provisions of the Income Tax Act, 1961. The main purpose of a tax audit is to verify the accuracy of income declared, deductions claimed, and compliance with tax laws.

What is Income Tax Audit?

A Tax Audit under Section 44AB of the Income Tax Act requires certain taxpayers (individuals, businesses, or professionals) to have their books of accounts audited by a qualified Chartered Accountant.

The auditor provides a detailed audit report in Form 3CA/3CB and Form 3CD, which is then submitted to the Income Tax Department.

Applicability of Income Tax Audit (Section 44AB)

A tax audit is mandatory if:

• For Businesses

  • If total sales/turnover/gross receipts exceed ₹1 Crore in a financial year.

  • The limit increases to ₹10 Crores if cash receipts and cash payments do not exceed 5% of total transactions.

• For Professionals

  • If gross professional receipts exceed ₹50 Lakhs in a financial year.

• For Presumptive Taxation (44AD/44ADA/44AE)

  • If the taxpayer declares income lower than the prescribed presumptive rate and income exceeds the basic exemption limit.

Forms Used in Income Tax Audit

• Form 3CA – For taxpayers already required to get accounts audited under any other law.

• Form 3CB – For taxpayers not required to get their accounts audited under any other law.

• Form 3CD – Detailed statement of particulars, including depreciation, loans, deductions, TDS, GST, and more.

Due Date for Income Tax Audit

• Tax Audit Report Filing: 30th September of the relevant assessment year.

• Companies requiring Transfer Pricing Audit (Form 3CEB): 31st October.

(Late filing may lead to penalties under Section 271B.)

Penalty for Not Conducting Tax Audit

• If applicable and not conducted, a penalty of 0.5% of turnover (up to ₹1,50,000) may be levied.

Benefits of Income Tax Audit

Ensures compliance with Income Tax laws
Reduces the risk of notices & penalties
Accurate reporting of income, expenses, and deductions
Helps in availing loans & financial approvals
Strengthens credibility of business & financial records
Facilitates smooth scrutiny by tax authorities

Why Choose Us for Tax Audit?

• Expert Chartered Accountants & tax professionals

• 100% error-free tax audit reports

• End-to-end guidance from documentation to filing

• Ensure compliance with Section 44AB & other provisions

• Reduce risks of penalty, scrutiny, or litigation

• Confidential, quick, and reliable services