Tax Audit (44AB) Keeping Made Simple. Stay Compliant. Avoid Penalties.
We help you comply with Section 44AB of the Income Tax Act by maintaining accurate records and conducting a seamless tax audit with complete documentation and reporting.
100% Compliance
As per IT Act Section 44AB
Accurate Reporting
Error-free records & documentation
Timely Delivery
On-time audit reports & filings
Data Security
Confidential & secure process
Request a Free Consultation
0% complete
What is Tax Audit Under Section 44AB?
Section 44AB of the Income Tax Act, 1961 requires certain businesses and professionals to get their accounts audited by a practicing Chartered Accountant. The objective is to ensure that books of account are maintained correctly, income is computed accurately, and deductions claimed under the Income Tax Act are genuine — reducing errors and curbing tax evasion. The full text of the section is available on the Income Tax Department's official e-filing portal.
Who Needs a Tax Audit?
A tax audit is generally mandatory if your business turnover exceeds ₹1 crore in a financial year (extended to ₹10 crore where cash transactions are below 5% of total receipts and payments), or if a professional's gross receipts exceed ₹50 lakh. Businesses opting out of the presumptive taxation scheme under Section 44AD, despite being eligible, may also fall under mandatory audit requirements.
Due Dates & Penalty for Non-Compliance
The tax audit report is typically due on 30th September of the assessment year, with the corresponding income tax return due by 31st October (subject to government extensions). Missing this deadline can attract a penalty under Section 271B — up to 0.5% of turnover, capped at ₹1,50,000 — making timely, accurate filing essential.
Documents Typically Required
Books of account, bank statements, sales and purchase registers, GST returns, fixed asset schedules, loan and investment records, and the previous year's financial statements are commonly needed to complete a smooth, accurate tax audit under Form 3CD. All of our engagements are carried out by Chartered Accountants holding a valid Certificate of Practice from the Institute of Chartered Accountants of India (ICAI).
Comprehensive Tax Audit Solutions
Maintenance of Books
As per Section 44AA
Tax Audit
As per Section 44AB
Audit Report (Form 3CD)
Accurate & Compliant
E-filing of Audit Report
Timely & Hassle-free
Support & Clarifications
During Assessments
Simple, Upfront Tax Audit Pricing
No hidden charges. Choose the plan that matches your turnover — every plan includes CA-reviewed Form 3CD and e-filing.
Essential
Turnover below ₹1 Crore
- ✓ Books review & reconciliation
- ✓ Tax audit report (Form 3CD)
- ✓ E-filing on IT portal
- ✓ Email support
Growth
Turnover ₹1 Cr – ₹5 Cr
- ✓ Everything in Essential
- ✓ Bookkeeping assistance
- ✓ Dedicated Chartered Accountant
- ✓ Priority filing before deadline
- ✓ Phone & WhatsApp support
Enterprise
Turnover above ₹5 Crore
- ✓ Everything in Growth
- ✓ Multi-location consolidation
- ✓ Quarterly compliance reviews
- ✓ Dedicated account manager
Tax Audit (44AB) — Common Questions
What is a tax audit under Section 44AB of the Income Tax Act?
A tax audit under Section 44AB is an examination of a taxpayer's books of account by a Chartered Accountant to verify that income, deductions, and compliance requirements have been correctly reported, and to report the findings in Form 3CA/3CB and Form 3CD.
Who is required to get a tax audit done under Section 44AB?
Businesses and professionals whose turnover or gross receipts exceed the prescribed limits under Section 44AB, or who do not opt for presumptive taxation despite being eligible, are required to get a tax audit done.
What is the turnover limit for mandatory tax audit for businesses?
A business is generally required to get a tax audit done if turnover exceeds ₹1 crore in a financial year. This limit is extended to ₹10 crore where cash transactions do not exceed 5% of total receipts and payments.
What is the turnover limit for professionals under Section 44AB?
Professionals such as doctors, lawyers, and consultants are required to get a tax audit done if their gross receipts exceed ₹50 lakh in a financial year.
What is the due date for filing the tax audit report?
The tax audit report under Section 44AB is generally due on 30th September of the assessment year, and the related income tax return is due by 31st October, unless extended by the tax department.
What happens if I miss the tax audit due date?
Missing the tax audit due date can attract a penalty under Section 271B of up to 0.5% of turnover, subject to a maximum of ₹1,50,000, unless reasonable cause for the delay is shown.
What is Form 3CD and why is it important?
Form 3CD is a detailed statement of particulars covering various aspects of the business, including accounting methods, deductions, and disclosures, that must accompany the tax audit report and is filed electronically.
Is tax audit applicable to businesses under presumptive taxation (44AD)?
Businesses that declare profits under presumptive taxation Section 44AD and meet the applicable conditions are generally exempt from tax audit, but a tax audit becomes mandatory if profits are declared below the presumptive rate and income exceeds the basic exemption limit.
What documents are required for a tax audit?
Commonly required documents include books of account, bank statements, sales and purchase invoices, GST returns, fixed asset records, loan and investment details, and prior year financial statements.
Can a Chartered Accountant e-file the tax audit report on my behalf?
Yes, a practicing Chartered Accountant can prepare and electronically file the tax audit report and Form 3CD on the income tax e-filing portal on behalf of the taxpayer, using their digital signature.
Representative Client Scenarios
A look at how businesses like yours navigate tax audit compliance with the right support. Tap any story to read the full breakdown.
Manufacturing SME · Pune Turnaround Before the Deadline
Turnover: ₹4.2 Crore
Challenge: Books were incomplete just weeks before the audit due date, with unreconciled vendor ledgers and missing fixed-asset records, putting the business at risk of a Section 271B penalty.
Approach: Our team ran a focused, prioritized review — reconciling bank and vendor accounts, rebuilding the fixed-asset schedule, and flagging disclosure gaps before drafting Form 3CD.
✓ Audit completed and e-filed 5 days ahead of the deadline, with zero penalty and a documented process to avoid the same crunch next year.
E-commerce Retailer · Bengaluru Reconciling Multi-Platform Sales
Turnover: ₹8.7 Crore
Challenge: Revenue was spread across six payment gateways and marketplaces, each with different settlement cycles and fee deductions, making accurate turnover reporting difficult.
Approach: We built a consolidated reconciliation sheet mapping gross sales, platform fees, and net settlements across all six channels before finalizing the audit figures.
✓ A clean, fully reconciled Form 3CD filed on time, with a repeatable monthly reconciliation template handed over to the finance team.
Professional Services Firm · Mumbai Setting Up First-Time Compliance
Turnover: ₹1.8 Crore
Challenge: This was the firm's first year crossing the audit threshold, and there was no prior bookkeeping discipline — expenses were tracked in spreadsheets with no formal ledger.
Approach: Alongside the audit engagement, we set up a proper double-entry bookkeeping system and trained the in-house team on monthly closing so future audits start from clean data.
✓ Timely audit completion plus an ongoing bookkeeping process that made the following year's audit significantly faster.
Healthcare Clinic Chain · Delhi NCR Consolidating Multi-Branch Accounts
Turnover: ₹6.3 Crore (across 4 branches)
Challenge: Each clinic branch maintained its own books independently, resulting in duplicate entries, inconsistent expense categorization, and a delayed view of consolidated turnover.
Approach: We standardized the chart of accounts across all branches, consolidated the ledgers centrally, and cross-verified cash-heavy transactions to stay within presumptive taxation thresholds.
✓ A single, consolidated audit report covering all branches, filed well within the deadline with a standardized process for future expansion.
These are illustrative, anonymized scenarios based on common client situations and are shared for informational purposes.