Shweta Saboo & Co.

Tax Audit

A Tax Audit is a mandatory audit conducted under Section 44AB of the Income Tax Act, 1961, for businesses and professionals whose turnover or gross receipts exceed specified limits in a financial year.

The objective of a tax audit is to ensure the accuracy of income computation and tax liability and to verify compliance with various income tax provisions.

Our tax audit services help you meet all reporting obligations accurately and on time, avoiding penalties, ensuring compliance, and improving financial transparency for regulatory and financial stakeholders.

Key Features

Comprehensive Tax Audit (44AB)

Tax audit conducted in line with Income Tax Act using Form 3CA/3CB and detailed reporting via Form 3CD.

Threshold Applicability Advisory

Guidance based on turnover limits for business, profession, or digital transactions to assess audit applicability.

Books of Accounts Review

In-depth review of income, expense records, depreciation, and disallowances to ensure accurate tax reporting.

TDS Compliance Verification

Check for TDS payments, returns, and disallowances under Section 40(a)(ia) to avoid penalties and notices.

Reporting of Loans & Capital

Accurate disclosure of related party transactions, capital changes, and loan details under audit clauses.

GST & ITR Reconciliation

Cross-verification of GST turnover with income tax filings to eliminate mismatch risks and future scrutiny.

Audit Report Filing

Timely e-filing of Form 3CD along with ITR to ensure seamless compliance and reduce filing issues.

Deadline & Penalty Advisory

Guidance to meet audit deadlines and avoid penalties under Section 271B for non-compliance or delay.

Information Checklist

To complete a tax audit, the following documents and information are typically required:

General Documents:

PAN and Aadhaar of Proprietor/Partners/Directors
Nature of Business or Profession
Financial Year for Audit

Financial Records:

Trial Balance
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Fixed Assets Register and Depreciation Chart

Tax Compliance Documents:

TDS Returns and Payment Challans
GST Returns (GSTR-1, GSTR-3B)
Advance Tax and Self-Assessment Tax Payment Receipts
Form 26AS and AIS

Transaction Details:

Details of Loans or Deposits above ₹20,000
Cash Transactions above limits (Sec 269SS/269T)
Details of Related Party Transactions
Capital Introduced/Withdrawn (for partners)

Other:

Stock Register/Inventory Valuation
Previous Year's Audit Report (if applicable)
Ledger details of expenses and incomes
Bank Reconciliation Statements (BRS)

FAQs

What is a Tax Audit under Section 44AB?

A Tax Audit is an examination of books of accounts of a business or professional by a Chartered Accountant to ensure compliance with income tax provisions and accurate reporting of income and expenses.

Who is required to get a tax audit done?

Businesses with turnover exceeding ₹1 crore or professionals with gross receipts exceeding ₹50 lakh are required to get their accounts audited. The limit increases to ₹10 crore if digital transactions make up at least 95% of all transactions.

What is the due date for a tax audit?

The due date for filing the tax audit report (Form 3CD) is usually **30th September** of the assessment year, but it may be extended by CBDT in some years.

What forms are used to file a tax audit report?

Form 3CA or 3CB (depending on audit type) and Form 3CD are used to file tax audit reports electronically through the Income Tax Portal.

What happens if I fail to conduct a tax audit?

Failure to comply with tax audit requirements may attract a penalty of 0.5% of turnover or ₹1,50,000, whichever is lower, under Section 271B.

Is tax audit applicable even if there is a loss?

Yes, if your business crosses the turnover threshold or if you claim losses and want to carry them forward under certain conditions, tax audit may still be mandatory.

Can a salaried person be required to undergo tax audit?

No, salaried individuals are not required to get a tax audit done. Tax audit is only applicable to business or professional income as per turnover criteria.

Is tax audit different from statutory audit?

Yes, tax audit is governed by the Income Tax Act, while statutory audit is governed by the Companies Act. A company may be required to do both, depending on its structure and size.

Can I file ITR without tax audit if required?

No, if your income qualifies for tax audit, you must get the audit done and file the report before filing your ITR. Otherwise, the return will be treated as defective.

Who can perform a tax audit?

Only a Chartered Accountant (CA) in practice is authorized to conduct a tax audit and submit the report on behalf of the taxpayer.