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Tax Audit Services
An Audit refers to an official and independent examination of a firm’s or company’s financial records and statements to ensure accuracy and compliance with applicable laws. There are various types of audits such as statutory audit, company audit, cost audit, stock audit, etc.
A Tax Audit, as prescribed under the Income Tax Act, 1961, is an examination of the books of accounts of a taxpayer to verify income, deductions, compliances, and correctness of tax-related information. It helps in accurate computation of income and smooth filing of Income Tax Returns (ITR).
Objectives of Tax Audit
- To ensure proper maintenance and accuracy of books of accounts
- To certify the correctness of income, expenses, deductions, and claims
- To report non-compliance or discrepancies, if any, identified during audit
- To assist Income Tax Authorities in verifying the correctness of returns filed
- To facilitate accurate computation of taxable income
Tax Audit Report Filing Process
- The Chartered Accountant (CA) uploads the tax audit report online using valid credentials.
- The taxpayer must appoint the CA and confirm details on the Income Tax Portal.
- Once uploaded, the report must be accepted or rejected by the taxpayer.
- If rejected, the process must be revised and re-uploaded.
- The audit report must be filed before the due date:
- 30th November – for taxpayers involved in international transactions
- 30th September – for other taxpayers
Important Rules for Tax Audit
- If a taxpayer runs multiple businesses, turnover of all businesses is aggregated.
- If engaged in multiple professions, gross receipts are aggregated.
- Business and profession turnovers are not clubbed together.
- Sale of fixed assets is not included in turnover or gross receipts.
- Tax audit reports cannot be revised except in limited cases due to changes in law.
Forms Required for Tax Audit
- Form 3CB – Tax audit report under Section 44AB
- Form 3CD – Statement of particulars
- Form 3CA & 3CD – When accounts are already audited under another law
Penalty for Non-Compliance with Tax Audit
> B0.5% of turnover / gross receipts, or
> ₹1,50,000
Waiver of Penalty
Penalty may be waived if the taxpayer proves a reasonable cause, such as:
> Resignation or death of the auditor
> Illness or disability of responsible partner
> Labour strikes or lockouts
> Loss of records due to theft, fire, or accidents
> Natural calamities beyond control
Why Choose CA Kapoor for Tax Audit?
- Experienced Chartered Accountants
- Accurate and timely tax audit reports
- Expertise in Income Tax compliance
- End-to-end audit filing support
- Client-focused and transparent approach