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What is a Tax Audit?

A tax audit under Section 44AB is an examination of your books of accounts by a Chartered Accountant. It checks that income, expenses, deductions, depreciation and TDS or TCS are correctly reported under the Income-tax Act.

It is different from a company’s statutory audit, which focuses on whether the financial statements give a true and fair view.

Who Needs a Tax Audit?

Limits can change, so we confirm your case before starting.

Forms & Due Dates

• Form 3CA: if your accounts are already audited under another law (such as a company)
• Form 3CB: for everyone else
• Form 3CD: detailed statement of particulars, attached to either form
• Tax audit report is due on 30 September; the ITR for audit cases is due on 31 October of the assessment year
• Transfer pricing cases have later dates

Under the new Income-tax Act, 2025, Section 44AB becomes Section 63 and the audit forms are replaced by Form 26, from tax year 2026-27.

Documents Required

• Trial balance, profit and loss account and balance sheet
• Sales and purchase registers, ledgers and bank statements
• GST returns and reconciliation
• TDS and TCS returns and challans
• Fixed asset register and depreciation details
• Loan, advance and cash-transaction details
• Previous year audit report and ITR

Tax Audit Process – Step by Step

1. Check applicability on turnover and receipts.
2. Collect and review books and documents.
3. Verify accounts, TDS, GST and other compliances.
4. Prepare and discuss Form 3CD with you.
5. CA signs and uploads the report on the income tax portal.
6. You approve it, then file your ITR.

Penalty for Non-Compliance

If you fail to get the audit done or file the report on time, the penalty under Section 271B is 0.5% of turnover or ₹1.5 lakh, whichever is lower, unless you show reasonable cause. Late ITR filing attracts separate fee and interest.

Only a Chartered Accountant can conduct a tax audit.

Why eMitrawala?

• Experienced team for quick document checking and filing
• Support from application to certificate
• Renewal and compliance reminders
• Clear pricing with no hidden charges