Tax Audit · Chennai
Tax Audit in Chennai
Section 44AB tax audit for businesses and professionals crossing prescribed turnover limits — accurate, on-time, and structured to withstand scrutiny.
What is a tax audit under Section 44AB?
A tax audit under Section 44AB of the Income Tax Act is an examination of a taxpayer's books of account by a Chartered Accountant, required once turnover or gross receipts cross prescribed thresholds — currently ₹1 crore for businesses (₹10 crore where cash receipts and payments are each under 5% of the total), and ₹50 lakh for professionals. The auditor issues Form 3CA/3CB along with Form 3CD, a detailed statement of particulars covering depreciation, disallowances, related-party transactions, and other items the Income Tax Department cross-checks during assessment. Missing the deadline attracts a penalty under Section 271B, in addition to losing the ability to defend certain claims that a clean tax audit report would have supported. For current rules and procedures, see the Income Tax Department — Section 44AB.
What's included
Applicability Assessment
Determining whether Section 44AB applies to your specific turnover, receipts, and cash-transaction mix for the year.
Form 3CA/3CB and 3CD Preparation
Full preparation and e-filing of the audit report and the detailed statement of particulars.
Presumptive Taxation Advisory
Assessing whether Sections 44AD/44ADA presumptive taxation could apply instead, avoiding a tax audit requirement altogether where eligible.
Disallowance & Compliance Review
Checking TDS compliance, related-party disclosures, and expense documentation before filing to avoid subsequent scrutiny notices.
Coordination with Statutory Audit
For companies, aligning tax audit timelines and workpapers with the statutory audit to avoid duplicated effort.
Revised/Belated Tax Audit Filings
Handling revised tax audit reports where a genuine error is identified after the original filing.
How a tax audit engagement proceeds
- 1
Applicability check
We confirm whether Section 44AB applies based on your actual turnover, gross receipts, and cash-transaction mix for the year, and whether presumptive taxation could avoid the requirement instead.
- 2
Books and documentation review
We review the books of account, TDS compliance, and related-party disclosures ahead of drafting, flagging gaps before they become audit-day surprises.
- 3
Form 3CD preparation
The detailed statement of particulars — depreciation, disallowances, related-party transactions, and other scrutiny-relevant items — is prepared and cross-checked against the books.
- 4
Form 3CA/3CB certification
The audit report is certified and e-filed, ahead of the 30 September deadline for most taxpayers.
- 5
Coordination with your ITR filing
The audit report feeds directly into your income tax return, filed by the corresponding 31 October deadline.
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FAQ
Frequently asked questions
What is the turnover limit that triggers a tax audit?
₹1 crore for businesses generally, extended to ₹10 crore if cash receipts and cash payments are each within 5% of the total transactions for the year — a threshold designed to reward businesses that operate mostly digitally. For professionals (doctors, lawyers, consultants, and similar), the limit is ₹50 lakh in gross receipts. These figures are set by the Finance Act and can change year to year, so we confirm the applicable limit at the time of your filing.
What is the due date for tax audit filing?
The tax audit report is generally due 30 September of the assessment year for most taxpayers, with the corresponding income tax return due 31 October — both dates are notified annually by the CBDT and occasionally extended, so we track the current-year deadline rather than assuming it repeats exactly.
What happens if I miss the tax audit deadline?
A penalty under Section 271B applies — 0.5% of turnover/gross receipts, capped at ₹1.5 lakh — unless you can show reasonable cause for the delay. Beyond the penalty, a late or missing tax audit report also weakens your position if the return is later selected for scrutiny.
Can I avoid a tax audit through presumptive taxation?
Possibly. Businesses under Section 44AD (turnover up to ₹2 crore, or ₹3 crore with the cash-transaction condition) and professionals under Section 44ADA (gross receipts up to ₹50 lakh, or ₹75 lakh with the same condition) can opt for presumptive taxation and avoid a tax audit, provided they meet the eligibility conditions and haven't opted out in a way that triggers a mandatory audit in a later year.
Is tax audit the same as statutory audit?
No. Statutory audit (under the Companies Act) applies to every registered company regardless of turnover; tax audit (under the Income Tax Act) applies based on turnover/receipts thresholds and covers different reporting requirements. A company can require both in the same year, and we coordinate the two so documentation isn't duplicated.
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