Tax Audit

Tax Audit under Section 44AB of Income-tax Act — Form 3CD reporting, audit report (Form 3CA / 3CB) by Chartered Accountant for businesses crossing turnover thresholds.

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Overview

Understanding Tax Audit

Tax Audit under Section 44AB of the Income-tax Act, 1961 is mandatory for businesses / professions crossing prescribed turnover / receipts thresholds — typically ₹1 crore for business, ₹50 lakh for profession (₹10 crore where 95%+ digital transactions). The audit is conducted by a Chartered Accountant who issues audit report in Form 3CA (along with statutory audit) or 3CB (independent), accompanied by detailed Form 3CD (44 clauses on income, expenses, compliance). Tax Audit due date is 30 September of the assessment year (subject to extensions). Late filing attracts penalty under Section 271B — 0.5% of turnover or ₹1.5 lakh whichever is lower. We coordinate Tax Audit by empaneled Chartered Accountants, prepare Form 3CD documentation, address Form 3CD compliance gaps, and integrate Tax Audit with ITR-6 / ITR-3 filing.
Why Legal Door

Built for Outcomes, Trusted Pan-India

Specialist lawyers, transparent pricing and end-to-end execution from first call to final order.

Empaneled CAs

Network of qualified CAs available for Tax Audit assignments.

Form 3CD Quality

Detailed, accurate Form 3CD reduces scrutiny risk.

TDS / Section 40A Coverage

Comprehensive coverage of TDS lapses, related-party transactions, presumptive computations.

ITR Integration

Tax Audit findings reflected accurately in ITR-6 / ITR-3.

What We Cover

Key Highlights

Section 44AB applicability assessment
Form 3CD preparation (44 clauses)
Audit report — Form 3CA (with statutory) / 3CB (standalone)
TDS compliance review (Section 40(a)(ia) disallowance)
Cash payment > ₹10,000 disallowance (Section 40A(3))
Related-party disclosures (Section 40A(2))
Inventory and method-of-accounting verification
Presumptive taxation (44AD / 44ADA / 44AE) opt-out
GST / TDS reconciliation
Filing on income-tax portal before 30 September
Our Process

How We Help You

A straightforward, transparent path from first call to resolution.

1Threshold Verification

Confirm tax-audit applicability based on turnover, digital transaction ratio.

2Document Compilation

Books, ledgers, TDS, GST returns, bank statements, contracts.

3CA Audit

CA conducts test checks, Form 3CD preparation.

4Filing

Form 3CA / 3CB + 3CD uploaded on income-tax portal by 30 September.

5Acceptance & ITR

Auditee accepts on portal; ITR follows by 31 October.

Legal Framework

Applicable Laws & Regulations

Key statutes, rules and judicial precedents that govern this service.

Income-tax Act — Section 44AB

Tax Audit threshold and conditions.

Section 44AD / 44ADA / 44AE

Presumptive taxation alternatives.

Form 3CA / 3CB / 3CD

Prescribed audit report formats.

Section 271B

Penalty for failure to audit / late filing.

Avoid These Mistakes

Common Pitfalls

Costly errors we routinely help clients fix — or better, avoid altogether.

Late Tax Audit

Penalty under Section 271B — 0.5% of turnover up to ₹1.5 lakh. Frequent.

Wrong Form (3CA vs 3CB)

Form 3CA used when statutory audit applies; 3CB standalone. Wrong form invites query.

TDS Lapses Disallowed

Sec 40(a)(ia) disallowance for non-deduction / non-deposit of TDS — caught in Tax Audit.

Cash > ₹10,000

Sec 40A(3) disallows cash expense above ₹10,000. Tax Audit reports trigger automatic ITR adjustment.

FAQs

Common Questions

Everything you need to know before you begin

Business turnover > ₹1 crore (₹10 crore if 95%+ digital), Profession receipts > ₹50 lakh, or Presumptive opt-out cases. Complete list under Section 44AB(a)-(e).
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Related Services

ITR for Companies
GST Audit
CA Audit & Report
Tax Planning — Corporate

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