Assurance Service

Tax Audit

Accurate, defensible tax filings — backed by an audit that holds up to scrutiny.

Purpose

Why a tax audit matters

A tax audit under Section 44AB of the Income Tax Act, 1961 verifies that your books of account correctly reflect your income, deductions and tax position — before you file your return, not after the department questions it.

Done properly, it does more than tick a compliance box: it catches disallowances, classification errors and reconciliation mismatches with GST and TDS data early, well before scrutiny season.

Enquire About Tax Audit
Governing LawIncome Tax Act, 1961 · Sec 44AB
Mandatory ForTurnover/receipts above prescribed limits
FrequencyAnnual, every assessment year
Conducted ByChartered Accountant
Typical Duration1 – 3 weeks
Key OutputForm 3CA/3CB and Form 3CD
Requirement & Applicability

Who needs a tax audit

Applicability is driven mainly by turnover or gross receipts, with specific carve-outs for cash-heavy businesses and presumptive taxation.

Getting Started

Documents & information we'll need

Having these ready before fieldwork begins keeps things on schedule.

How We Work

Our tax audit process

Built to reconcile cleanly with your GST and TDS filings, not just your books.

  1. Step 1: Applicability Check. Confirm whether the turnover or receipts threshold actually applies to you this year.
  2. Step 2: Books Verification. Verify books of account and reconcile them against GST and TDS filings.
  3. Step 3: Classification Review. Test how income and expenses have been classified and treated for tax purposes.
  4. Step 4: Disallowance Check. Review for disallowances under sections like 40A(3), 43B and related party rules.
  5. Step 5: Form 3CD Prep. Prepare the clause-wise particulars required in Form 3CD.
  6. Step 6: Client Review. Walk through the draft report and computations with you before filing.
  7. Step 7: E-filing. File Form 3CA/3CB and 3CD electronically ahead of the deadline.
What You Receive

Deliverables

01

Form 3CD

The detailed, clause-wise statement of particulars required under the Act.

02

Audit Report

Form 3CA or 3CB, signed and ready for filing.

03

Reconciliation Statements

Books-to-GST and books-to-TDS reconciliations, so mismatches are resolved, not hidden.

04

Observations Note

A plain-language note on anything that could raise questions in scrutiny.

Common Questions

Frequently asked questions

What's the turnover threshold for a tax audit?

₹1 crore for businesses (₹10 crore if cash transactions are 5% or less of total), and ₹50 lakh for professionals (₹75 lakh under the same low-cash condition).

How is this different from a statutory audit?

A statutory audit examines your financial statements under the Companies Act. A tax audit separately examines your books for compliance with the Income Tax Act — many companies need both, and they don't replace each other.

What's the penalty for skipping a required tax audit?

0.5% of turnover or gross receipts, up to a maximum of ₹1.5 lakh, under Section 271B — unless there's a reasonable cause.

When is the tax audit deadline?

Typically 30 September of the assessment year for most taxpayers, though the government occasionally extends it. We track your deadline and plan fieldwork well ahead.

Do you also file the income tax return?

Yes — we can handle the tax audit and the return filing together so the numbers are consistent across both.

Ready to get your tax audit done early?

Tell us your turnover and structure, and we'll confirm applicability and timelines.

Get in Touch
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