Tax Audit Services (Income Tax)

What is Tax Audit Services (Income Tax)?

Tax Audit Services (Income Tax) is a critical corporate requirement in India. At Atlaz, we ensure your business remains 100% compliant with government regulations. Engaging a professional service for your Tax Audit Services (Income Tax) mitigates legal risks, optimizes operational efficiency, and establishes a foundation of trust with stakeholders and regulatory bodies.

Aspect With Professional Support Without Support
Compliance Speed Accelerated Prone to delays
Legal Risk Mitigated High
Cost Efficiency Optimized Hidden Penalties

Thorough Tax Audit services under Section 44AB of the Income Tax Act to ensure accurate tax filings and compliance.

Thorough Guide to Tax Audit Services (Income Tax)

A Tax Audit, governed by Section 44AB of the Income Tax Act, 1961, involves a detailed examination of the books of accounts of a business or profession from an income tax perspective. It ensures that the taxpayer has properly maintained books of accounts and complied with the various provisions of the Income Tax law.

The primary objective of a tax audit is to assist the assessing officer in computing the correct taxable income of the assessee. The auditor verifies the accuracy of the income tax returns filed, checks for any impermissible deductions, and reports findings in Form 3CA/3CB and Form 3CD.

For businesses, a tax audit becomes mandatory if the total sales, turnover, or gross receipts exceed Rs. 1 Crore in a financial year (or Rs. 10 Crores if 95% of transactions are digital). For professionals, the limit is Rs. 50 Lakhs in gross receipts. Managing these requirements requires deep tax expertise to prevent scrutiny and penalties.

Information Required

  • Finalized Trial Balance, Balance Sheet, and P&L Account
  • Copies of previously filed Income Tax Returns
  • TDS returns and challans (Form 26AS/AIS)
  • Details of additions/deletions to fixed assets
  • Cash book and bank statements
  • Details of loans, advances, and related party transactions

Engagement Process

1

Engagement and detailed review of books of accounts

2

Reconciliation of financials with GST returns and Form 26AS/AIS

3

Verification of deductions claimed under Chapter VI-A

4

Preparation of Tax Audit Report in Form 3CD

5

Digital filing of Form 3CA/3CB and 3CD on the IT portal

6

Approval of the filed report by the taxpayer on the portal

Service Timeline

Filing Deadline: Sept 30 / Oct 31

Value Delivered

Accurate Tax Computation

Ensure you are paying the correct amount of tax—no more, no less.

Avoid Scrutiny

A clean tax audit report significantly reduces the chances of income tax scrutiny and notices.

Penalty Prevention

Avoid the penalty of 0.5% of turnover (up to Rs. 1.5 Lakhs) for failing to get a tax audit.

Claim Maximum Deductions

Expert auditors help identify all legally permissible deductions and exemptions.

Engage Our Audit Team

Frequently Asked Questions

What is the threshold limit for a Tax Audit?
For businesses, the limit is Rs. 1 Crore (Rs. 10 Crores if cash transactions are less than 5%). For professionals, it is Rs. 50 Lakhs in gross receipts.
What forms are filed for a tax audit?
The CA files the audit report in Form 3CB (if books are not audited under any other law) or Form 3CA (if books are already audited under laws like the Companies Act), along with the detailed annexure Form 3CD.
Is tax audit applicable to presumptive taxation?
If you declare profits lower than the prescribed rates under Section 44AD (8% or 6%) or 44ADA (50%), and your total income exceeds the basic exemption limit, a tax audit becomes mandatory.
What is the penalty for not getting a tax audit done?
The penalty under Section 271B is 0.5% of the total sales, turnover, or gross receipts, up to a maximum of Rs. 1,50,000.
Can I file the tax audit report myself?
No, a Tax Audit Report must be digitally signed and uploaded directly by a practicing Chartered Accountant using their DSC and ARN on the Income Tax Portal.
What is the due date for filing the tax audit report?
The general due date is September 30th of the assessment year. If the assessee is required to furnish a report on international transactions (transfer pricing), the due date is October 31st.