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Tax Audit
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30 MIN
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From tax planning to compliance and financial consultancy, we’re here to help you move forward with clarity and confidence.
Tax Audit: An Overview
Meaning of Tax Audit
A Tax Audit involves examining a taxpayer’s books of accounts to verify compliance with the Income Tax Act, 1961, including the accuracy of income reported, deductions claimed, and other relevant tax information.
Applicability — Section 44AB
Tax Audit is required under Section 44AB when the applicable conditions are met:
Category of Taxpayer | Applicability Criteria |
|---|---|
Business (Normal) | Total sales, turnover, or gross receipts exceed ₹1 crore |
Business (Cash Transactions ≤ 5%) | Threshold may extend to ₹10 crore, subject to applicable conditions |
Professionals | Gross receipts exceed ₹50 lakh |
Presumptive Taxation (Section 44AD/44ADA) | Applicable where the prescribed conditions for opting out or reporting income below the presumptive rate are satisfied |
Due Date for Tax Audit
The tax audit report is generally required to be furnished by 30th September of the relevant Assessment Year, unless the due date is extended by the CBDT.
Forms Required
Form | Purpose |
|---|---|
Form 3CA/3CB | Tax Audit Report |
Form 3CD | Statement of particulars accompanying the audit report |
Penalty — Section 271B
Failure to get the accounts audited or furnish the required audit report may attract a penalty under Section 271B:
0.5% of total sales, turnover, or gross receipts, or
₹1,50,000,
whichever is lower, subject to applicable provisions.
Exceptions
Penalty may not be imposed where the taxpayer establishes reasonable cause for the failure. Examples may include:
Natural calamities
Death or serious circumstances affecting the accountant
Other circumstances accepted as reasonable cause under the applicable provisions
How the work moves
Three calm moves.
A clear handoff from first conversation to year-round support.
01
Initial consultation
Tell us about your needs and we’ll confirm this is the right fit.
02
Onboarding
We set up the engagement, gather the right information, and confirm the responsible advisor.
03
Ongoing support
We handle the work and stay available year-round for questions.
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From tax planning to compliance and financial consultancy, we’re here to help you move forward with clarity and confidence.