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Tax Audit Support Services Under Section 44AB
Section 44AB Tax Audit Support by Qualified Professionals in 7 to 15 Working Days - Starting at ₹7,999 Only
Form 3CA/3CB & 3CD Filing. UDIN Generation. E-Filing on IT Portal. Dedicated Expert Support.
Complete Books of Accounts Verification
Form 3CA/3CB Preparation
Form 3CD (44 Clauses) Compilation
TDS Compliance Review
GST Reconciliation (Clause 44)
Tax Computation Verification
UDIN Generation & E-Filing
Dedicated Expert from Start to Finish
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Is Your Business Subject to Mandatory Tax Audit Under Section 44AB?
Get your tax audit support from qualified professionals before the September 30 deadline. Complete Form 3CD preparation and e-filing starting at ₹7,999.
Simple Process
Here's How It Works
01
Fill the Form
Simply fill the above form to get started.
02
Call to discuss
Our team will connect with you and explain the next compliance steps.
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Get Tax Audit Support from Qualified Professionals
End-to-end tax audit support under Section 44AB: books verification, Form 3CA/3CB and 3CD preparation, UDIN generation, and filing assistance on the IT portal.
Pricing
Simple & Transparent Pricing
MOST POPULAR
Tax Audit Support Package 2026
From ₹7,999 IncorpX professional fee for assistance
Timeline depends on the application type and authority review
Application support Professional assistance
Complete Books of Accounts Verification
Form 3CA or 3CB Preparation
Form 3CD (All 44 Clauses) Compilation
TDS Compliance Review & 26AS Verification
GST Reconciliation Under Clause 44
Tax Computation Statement Verification
Statutory Register Review
UDIN Generation via UDIN Portal
E-Filing on Income Tax Portal
Dedicated Expert Support Throughout
*Listed amounts are IncorpX professional charges for end-to-end assistance. Government / statutory fees are charged separately at actuals.
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Package includes first-year compliance services: auditor appointment, annual filings, and related obligations.
What: Mandatory examination of books by a qualified professional under Section 44AB of the Income Tax Act, 1961 | Who: Businesses with turnover above ₹1 crore, professionals with receipts above ₹50 lakhs | Cost: Starting ₹7,999 at IncorpX | Timeline: 7 to 15 working days | Deadline: September 30 of the assessment year (tax audit report); October 31 (ITR for audit cases) | Forms: 3CA or 3CB + 3CD (44 clauses) | Penalty: 0.5% of turnover or ₹1,50,000 under Section 271B
Tax audit is a mandatory examination of books of accounts by a Tax Professional under Section 44AB of the Income Tax Act, 1961. It verifies financial accuracy and tax compliance for businesses and professionals exceeding specified turnover thresholds.
Tax audit under Section 44AB of the Income Tax Act, 1961, requires certain taxpayers to get their books of accounts examined by a practicing Tax Professional before filing their income tax return. The audit ensures that financial records accurately reflect the taxpayer's income, deductions, and tax liability. Section 44AB specifies three categories of assessees who must get audited: businesses with annual turnover exceeding ₹1 crore (increased to ₹10 crore for businesses where cash receipts and cash payments each do not exceed 5% of their respective totals), professionals with gross receipts above ₹50 lakhs, and taxpayers under presumptive taxation schemes (Sections 44AD, 44ADA, 44AE) who declare income below the prescribed percentage. The auditor prepares Form 3CA or 3CB (audit report) along with Form 3CD (statement of particulars with 44 clauses). The tax audit report must be filed on the Income Tax e-filing portal before September 30 of the assessment year. The ITR for audit cases is due by October 31. CBDT may extend these deadlines; check the latest notification on incometaxindia.gov.in.
Governing Act: Income Tax Act, 1961 | Key Section: Section 44AB | Prescribed Forms: Rule 6G of Income Tax Rules | Expert Regulator: relevant regulatory body
Parameter
Details
Governing Law
Income Tax Act, 1961 (Section 44AB)
Regulator
CBDT / Income Tax Department
Audit Conducted By
Practicing Tax Professional
Processing Time
7 to 15 working days
Government Fee
₹0 (no government fee for tax audit)
Professional Fee
Starting ₹7,999
Due Date (Tax Audit Report)
September 30 of the assessment year (CBDT may extend; check latest notification)
Unlike a statutory audit that focuses on the fairness of financial statements under the Companies Act, a tax audit specifically examines income tax compliance. The auditor checks depreciation, TDS deductions, Section 43B disallowances, and cash transaction limits. If your company also requires statutory audit, explore our financial audit support for a combined engagement.
This page covers tax audit applicability thresholds, the step-by-step filing process, required documents, Forms 3CA/3CB/3CD details, current deadlines for AY 2026-27, Section 271B penalties, a tax audit vs statutory audit comparison, and IncorpX's pricing. For statutory audit under the Companies Act, 2013, refer to our financial audit services page.
Who Needs a Tax Audit? Applicability & Turnover Limits
Tax audit under Section 44AB applies to businesses, professionals, and taxpayers under presumptive taxation who exceed specific thresholds. The table below covers all categories for FY 2025-26 (AY 2026-27):
Category
Section
Threshold
Form Used
Business (general)
44AB(a)
Turnover > ₹1 Crore
3CB + 3CD
Business (cash ≤ 5%)
44AB(a) proviso
Turnover > ₹10 Crore
3CB + 3CD
Professionals
44AB(b)
Gross receipts > ₹50 Lakhs
3CB + 3CD
Pvt Ltd / Public Company
44AB + Companies Act
Turnover exceeds limit
3CA + 3CD
LLP
44AB + LLP Act
Turnover > ₹1 Cr / Receipts > ₹50L
3CA + 3CD
Sec 44AD (Business)
44AB(e)
Profit < 8%/6% + income > exemption
3CB + 3CD
Sec 44ADA (Professionals)
44AB(e)
Profit < 50% + income > exemption
3CB + 3CD
Sec 44AE (Goods Carriage)
44AB(d)
Income claimed < prescribed
3CB + 3CD
Companies subject to Pvt Ltd compliance requirements and LLPs under LLP compliance obligations use Form 3CA since they are already audited under their respective Acts.
The ₹10 crore threshold applies only if cash receipts and cash payments each do not exceed 5% of total receipts and total payments respectively. Even one cash receipt or payment exceeding 5% of the total brings the threshold back to ₹1 crore.
Section 44AD has a 5-year lock-in. If you opt for presumptive taxation and then declare profit below 8%/6%, you must get a tax audit done AND maintain full books of accounts for 5 consecutive years.
Tax Audit Due Date & Filing Deadlines
The standard due date for filing the tax audit report is September 30 of the assessment year. The ITR filing due date for audit cases is October 31 of the assessment year. CBDT may extend these deadlines via notification; always check the latest circular on incometaxindia.gov.in. Missing either deadline triggers multiple penalties.
Filing Type
Standard Due Date
Late Fee
Tax Audit Report (Form 3CA/3CB + 3CD)
September 30
Section 271B penalty
ITR for Audit Cases
October 31
Section 234F: ₹5,000
Transfer Pricing Report (Form 3CEB)
October 31
Section 271BA penalty
Missing the tax audit and ITR deadlines triggers a double penalty: Section 271B (0.5% of turnover or ₹1,50,000, whichever is lower) for non-audit AND Section 234F (₹5,000) for late ITR filing, plus interest at 1% per month under Sections 234A/B/C on any outstanding tax liability.
Tax Audit Report Forms: 3CA, 3CB and 3CD
The tax audit report under Rule 6G of the Income Tax Rules consists of an audit report form (3CA or 3CB) filed with a statement of particulars (Form 3CD). The form used depends on whether the assessee is already audited under another law.
Attribute
Form 3CA
Form 3CB
Form 3CD
Type
Audit Report
Audit Report
Statement of Particulars
Used When
Already audited under other law
Not audited under other law
Filed with 3CA or 3CB
Applicable For
Pvt Ltd, Public Co., LLP
Proprietorship, Partnership
All assessees
Clauses
N/A
N/A
44 Clauses
Key Clauses
N/A
N/A
Cl.27 (TDS), Cl.30 (Cash), Cl.44 (GST)
Key Clauses of Form 3CD
Clause
Subject
Key Requirement
Clause 8
Previous year dates
Financial year start and end dates
Clause 12
Books of accounts
List of books maintained
Clause 14
Method of accounting
Cash or mercantile; any change from prior year
Clause 21
Depreciation
Amount of depreciation allowable under Section 32
Clause 26
Section 43B
Deductions allowable only on actual payment
Clause 27
TDS/TCS
Amounts on which tax deducted/collected at source
Clause 30
Section 40A(3)
Cash payments exceeding ₹10,000
Clause 31
Section 269SS/269T
Cash loans/deposits exceeding ₹20,000
Clause 36
Section 92
International/domestic transfer pricing
Clause 44
GST Reconciliation
Turnover as per GST returns vs books
Clause 44 requires the auditor to reconcile GST return filing data (GSTR-1, GSTR-3B, GSTR-9) with the books of accounts. Discrepancies in turnover, input tax credit, and expenditure must be reported. The Expert must generate a UDIN from the relevant professional body UDIN portal for authentication of the audit report.
Form 3CE is a separate form for non-resident taxpayers receiving royalty or fees for technical services in India under Section 44DA. It replaces Form 3CB for such non-residents.
How Tax Audit Works: Step-by-Step Process
The tax audit support process at IncorpX involves 7 steps, takes 7 to 15 working days, and starts at ₹7,999. Each step is coordinated by a dedicated professional assigned to your case.
Step 1: Share Financial Documents with IncorpX
Upload your books of accounts, bank statements, GST returns, TDS certificates, and fixed asset register through our secure portal. Our team verifies document completeness within 1 working day.
Portal: IncorpX secure portal | Time: 1 working day
Step 2: Expert Assignment and Appointment
IncorpX assigns a qualified Tax Professional to your case. Add the assigned Expert on the Income Tax e-filing portal under the "My Tax Professional" section using their professional membership number. The professional accepts the assignment on the portal.
Portal: incometax.gov.in | Time: 1 working day
Step 3: Books of Accounts Verification
The Expert examines your cash book, ledger, journal, trial balance, and bank reconciliation. Every entry is verified for accuracy as required under Section 44AB. Discrepancies are flagged and discussed with you before proceeding.
Time: 2 to 4 working days
Step 4: TDS and GST Compliance Review
The auditor reviews TDS deductions, deposits, and returns against Form 26AS and AIS. GST reconciliation under Clause 44 of Form 3CD compares turnover reported in GST returns with your books of accounts.
Time: 1 to 2 working days
Step 5: Form 3CA/3CB and 3CD Preparation
The Expert prepares Form 3CA (if already audited under another law) or Form 3CB (if not) along with Form 3CD covering all 44 clauses. This includes depreciation, cash transactions, TDS compliance, transfer pricing, and GST reconciliation.
Time: 2 to 3 working days
Step 6: UDIN Generation and Report Signing
The Expert generates an 18-digit UDIN from the UDIN portal at udinportal.gov.in for the audit report. The report is digitally signed using the Expert's digital signature certificate.
Portal: udinportal.gov.in | Time: 1 working day
Step 7: Upload and E-File on IT Portal
The signed audit report is uploaded on incometax.gov.in. You review and accept the report on the portal. After acceptance, file your income tax return filing before the October 31 deadline.
Portal: incometax.gov.in | Time: 1 working day
Do not forget to add your Expert on the Income Tax e-filing portal before the Expert starts uploading. If the Expert is not added under "My Expert" on incometax.gov.in, the upload will fail and cause delays.
Dedicated professional. 7 to 15 working days. Zero penalty record.
Documents Required for Tax Audit
Gather these documents before your tax audit begins to ensure on-time completion:
Financial Documents
Books of AccountsCash book, ledger, journal, trial balance
Profit & Loss Account and Balance SheetFinal financial statements
Bank StatementsAll accounts for the full financial year
Fixed Asset RegisterWith depreciation schedule per IT Act
Tax Computation StatementWith advance tax and self-assessment challans
Tax & Compliance Documents
Previous Year ITRAcknowledgment and prior audit report
TDS CertificatesForm 16A, 16B, 16C
TDS ReturnsForm 24Q, 26Q, 27Q copies
Form 26AS / AISAnnual Information Statement from IT portal
Digital Signature Certificate (DSC)Of authorized signatory
Proper bookkeeping services throughout the year make audit preparation significantly faster and reduce last-minute errors.
Download your Form 26AS and Annual Information Statement (AIS) from incometax.gov.in before the audit begins. These documents help the Expert cross-verify TDS credits and high-value transactions flagged by the IT Department.
Tax Audit Penalties Under Section 271B
Non-compliance with tax audit requirements triggers multiple penalties under the Income Tax Act. Here is a complete breakdown of penalties, interest, and their applicable sections:
Penalty Section
Trigger
Amount
Maximum
Section 271B
Failure to get tax audit done
0.5% of turnover/gross receipts
₹1,50,000
Section 234F
Late ITR filing
₹5,000 (₹1,000 if income is under ₹5 lakhs)
₹5,000
Section 234A
Late ITR filing interest
1% per month on unpaid tax
No cap
Section 234B
Advance tax default
1% per month on shortfall
No cap
Section 234C
Advance tax installment default
1% per month per quarter
No cap
Penalty Exemptions (Reasonable Causes Under Section 273B)
The Assessing Officer can waive Section 271B penalties if the assessee proves a reasonable cause. Accepted reasons include:
Natural calamities (floods, earthquakes)
Resignation of the tax auditor during the audit period
Resignation of accounting staff responsible for maintaining books
Labour strikes or lockouts affecting business operations
Loss or destruction of books of accounts
Physical incapacity or death of the responsible person
Late TDS return filing also compounds penalties during audit non-compliance. Businesses should ensure TDS deposits and returns are current before the audit begins.
A business with ₹5 crore turnover that misses the September 30 deadline faces ₹1,50,000 in Section 271B penalty (0.5% of ₹5 crore = ₹2,50,000, capped at ₹1,50,000) PLUS ₹5,000 in Section 234F fees PLUS monthly interest on any outstanding tax liability.
Tax Audit vs Statutory Audit: Key Differences
Tax audit and statutory audit serve different purposes and are governed by different laws. Every Pvt Ltd company that needs a tax audit uses Form 3CA (since it is already audited under the Companies Act). Proprietorships and partnership firms without any other audit obligation use Form 3CB.
Parameter
Tax Audit
Statutory Audit
Governing Law
Income Tax Act, 1961 (Section 44AB)
Companies Act, 2013 (Section 143)
Applicability
Based on turnover/receipt thresholds
All registered companies, LLPs above threshold
Trigger
Turnover > ₹1 Cr (business) / ₹50L (professional)
Mandatory for all companies
Auditor
A qualified professional
Appointed by Board/AGM
Report Form
Form 3CA/3CB + 3CD
CARO + Auditor's Report
Focus
Tax compliance, income accuracy
Financial statement fairness
Deadline
September 30 (CBDT may extend)
AGM within 6 months of FY end
Penalty
Section 271B: 0.5% or ₹1,50,000
Section 447: Fraud penalties
Filed On
incometax.gov.in
MCA portal (MCA21)
Can Same Expert Do Both?
Yes (but not internal auditor)
Yes (statutory auditor can also do tax audit)
Need statutory audit as well? Explore our financial audit support for combined audit packages that cover both requirements under one engagement.
Tax Audit Fees & Cost in India 2026
There is no government fee for tax audit filing. Listed amounts are IncorpX professional charges for tax audit preparation and support assistance. Here is a detailed breakdown of what the ₹7,999 package includes:
Component
Included in ₹7,999
Notes
Books of Accounts Verification
✅
Cash book, ledger, journal, trial balance
Form 3CA or 3CB Preparation
✅
Audit report form
Form 3CD (44 Clauses) Compilation
✅
Statement of particulars
TDS Compliance Review
✅
Form 26AS/AIS cross-verification
GST Reconciliation (Clause 44)
✅
GSTR vs books reconciliation
Tax Computation Statement
✅
Draft computation preparation
UDIN Generation
✅
18-digit UDIN authentication
E-Filing on IT Portal
✅
Upload and submission
Dedicated Expert Support
✅
Single Expert from start to finish
Statutory Register Review
✅
For companies and LLPs
Entity-Wise Pricing
Entity Type
Starting Price
Form Used
Includes
Proprietorship (Turnover > ₹1 Cr)
₹7,999
3CB + 3CD
Full audit support + e-filing
Partnership Firm
₹7,999
3CB + 3CD
Full audit support + e-filing
Professional (Receipts > ₹50L)
₹7,999
3CB + 3CD
Full audit support + e-filing
Presumptive (44AD/44ADA/44AE)
₹7,999
3CB + 3CD
Full audit support + e-filing
LLP
₹9,999
3CA + 3CD
Audit support + statutory cross-check
Private Limited Company
₹9,999
3CA + 3CD
Audit support + statutory cross-check
Listed amounts are IncorpX professional charges for end-to-end tax audit preparation and support assistance. There is no government fee for tax audit filing. DSC (Digital Signature Certificate) costs ₹1,000 to ₹2,000 additionally if you do not already have one. Compare with market rates of ₹5,000 to ₹15,000, noting that many providers charge extra for GST reconciliation and UDIN generation.
Benefits of Professional Tax Audit Support
Section 271B Penalty Avoidance
Timely audit filing avoids the 0.5% turnover penalty or ₹1,50,000 under Section 271B. With IncorpX's 800+ audits and zero-penalty record, your compliance is protected.
Accurate Tax Computation
A qualified Expert verifies every deduction, exemption, and income head. This reduces the risk of notices from the Assessing Officer under Section 143(1) or 143(3).
Complete Form 3CD Compliance
All 44 clauses of Form 3CD are addressed, including Clause 27 (TDS), Clause 30 (cash payments), and Clause 44 (GST reconciliation). Nothing is missed.
Tax Saving Identification
The auditor identifies unclaimed deductions under Sections 80C to 80U, missed depreciation, and allowable expenses under Section 43B that reduce your tax liability.
GST Reconciliation Under Clause 44
Professional audit reconciles your GST return data (GSTR-1, 3B, 9) with books of accounts. Discrepancies are flagged and reported, preventing future GST notices.
Dedicated Expert from Start to Finish
One qualified Expert handles your entire audit. No handoffs, no re-explanation. The same Expert who verifies your books also signs the report and generates the UDIN.
On-Time Filing Assurance
IncorpX's structured 7-step process ensures your audit report is filed before the September 30 deadline. No last-minute delays.
100% Online Process
Upload documents securely, get audit done digitally, and have the report filed on incometax.gov.in without visiting any office. Our accounting services also work fully online.
Why Choose IncorpX for Tax Audit Support?
IncorpX provides end-to-end tax audit preparation and filing support, coordinating with qualified professionals for UDIN authentication. Our team handles document verification, compliance review, and filing coordination while the audit itself is conducted by a qualified professional assigned to your case. With support provided to 10,000+ businesses across India for compliance services, our team has maintained a perfect filing record since inception. Here is what sets us apart:
800+ Tax Audits Facilitated
Quantified experience across proprietorships, partnerships, Pvt Ltd companies, and LLPs.
Zero Penalty Track Record
Every audit report filed before the deadline. Not a single client penalised under Section 271B.
Qualified Professionals Only
All audits conducted by qualified professionals with valid UDIN registration, coordinated through IncorpX.
4.8/5 Client Rating
Based on 200+ verified client reviews from business owners across India.
₹7,999 Transparent Pricing
All-inclusive, no hidden charges. Competitors do not disclose their fees publicly.
100% Online Process
No physical visits needed. Documents shared securely, audit done digitally.
Dedicated Professional from Assignment to Filing
One qualified professional handles your entire audit end to end.
GST Reconciliation & TDS Review Included
Clause 44 reconciliation and 26AS verification at no extra cost.
Talk to our team and get a quote for your specific entity type.
Frequently Asked Questions About Tax Audit Services
Answers to the most common questions about tax audit under Section 44AB, covering applicability, forms, costs, deadlines, penalties, and the audit process. Based on real queries from business owners and our experience facilitating 800+ tax audits.
A tax audit under Section 44AB of the Income Tax Act, 1961 is a mandatory examination of books of accounts by a practicing Tax Professional. It applies to businesses with turnover above ₹1 crore and professionals with gross receipts exceeding ₹50 lakhs. The auditor files Form 3CA or 3CB with Form 3CD.
Tax audit is mandatory for businesses with annual turnover exceeding ₹1 crore (₹10 crore where cash receipts and payments each do not exceed 5% of total), professionals with gross receipts above ₹50 lakhs, and taxpayers under Sections 44AD/44ADA/44AE who declare income below prescribed limits while exceeding the basic exemption limit.
For FY 2025-26 (AY 2026-27), the tax audit limit is ₹1 crore for businesses and ₹50 lakhs for professionals. Businesses where cash receipts and payments each do not exceed 5% of total get a higher threshold of ₹10 crore. These limits are defined under Section 44AB of the Income Tax Act.
Form 3CA is the audit report for assessees already audited under another law (e.g., Companies Act for Pvt Ltd companies). Form 3CB is for assessees not audited under any other law (e.g., proprietorships, partnership firms). Both forms are filed together with Form 3CD (statement of particulars).
Form 3CD is the statement of particulars filed alongside the tax audit report. It contains 44 clauses covering details like nature of business, turnover, depreciation, GST reconciliation (Clause 44), Section 40A(3) cash payments, Section 269SS/269T compliance, and tax deduction details under Sections 43B and 80C to 80U.
Yes, a private limited company requires tax audit under Section 44AB if its turnover exceeds ₹1 crore (or ₹10 crore where cash does not exceed 5% of total transactions). Since companies are also audited under the Companies Act, the auditor uses Form 3CA instead of Form 3CB, along with Form 3CD.
An LLP needs tax audit under Section 44AB if its annual turnover exceeds ₹1 crore (₹10 crore where cash does not exceed 5% of total transactions) or if it is a professional LLP with gross receipts above ₹50 lakhs. LLPs already audited under the LLP Act use Form 3CA + 3CD.
Only a practicing Tax Professional registered under applicable professional regulations can conduct a tax audit. Internal employees, part-time tax experts, tax experts indebted to the assessee for more than ₹10,000, and tax experts who maintain the assessee's books are not eligible. Each Expert can accept a maximum of 45 tax audits per year.
UDIN is a Unique Document Identification Number, an 18-digit code generated by the Tax Professional on the UDIN portal (udinportal.gov.in). It is mandatory for every certificate and audit report issued by a qualified professional, including tax audit reports under Section 44AB. Without a valid UDIN, the audit report is not authenticated.
Under Section 44AD, businesses with turnover up to ₹2 crore (₹3 crore if cash receipts do not exceed 5% of total gross receipts) can declare profits at 8% (6% for digital receipts) without maintaining detailed books. However, if they declare profit below 8%/6% and total income exceeds the basic exemption limit, tax audit under Section 44AB becomes mandatory. A 5-year lock-in applies once opted into Section 44AD.
Yes, a tax audit report can be revised before the due date if errors are discovered. The Expert must file a revised Form 3CA/3CB and 3CD on the Income Tax e-filing portal with a new UDIN. The assessee must accept the revised report on the portal. After the filing deadline, revision is generally not permitted unless directed by tax authorities.
Clause 44 requires GST reconciliation between the turnover reported in GST returns (GSTR-1, GSTR-3B, GSTR-9) and the turnover recorded in the books of accounts. The auditor reports any discrepancy in expenditure, input tax credit, and turnover as part of the Form 3CD filing under this clause.
Log in to incometax.gov.in, add your Expert under "My Expert" using their membership number. The Expert uploads the signed Form 3CA/3CB and Form 3CD with a UDIN. You review and accept the report on the portal. After acceptance, file your ITR before October 31 of the assessment year.
A typical tax audit takes 7 to 15 working days depending on the complexity of transactions, volume of records, and entity type. Proprietorships with straightforward books are completed in 7 days. Companies with multiple GST registrations and high-value transactions need 15 or more working days.
The assessee appoints a qualified professional by mutual agreement. On the Income Tax e-filing portal (incometax.gov.in), navigate to "My Expert" and add the auditor using their professional membership number. The professional accepts the appointment on the portal. Each Expert can hold a maximum of 45 audit assignments per financial year.
Key documents include: books of accounts (cash book, ledger, journal), bank statements, previous year's ITR and audit report, GST returns (GSTR-1, 3B, 9), TDS certificates (Form 16A/16B), fixed asset register with depreciation schedule, tax computation statement, advance tax challans, and a valid Digital Signature Certificate (DSC).
Failing to complete tax audit by the due date attracts a penalty under Section 271B of 0.5% of total sales/turnover/gross receipts or ₹1,50,000, whichever is lower. Additionally, late ITR filing triggers Section 234F penalties up to ₹5,000 and interest under Sections 234A/234B/234C at 1% per month.
The process involves: (1) gathering books of accounts and financial documents, (2) appointing a Expert on the Income Tax e-filing portal, (3) Expert verifies books and compliance, (4) Expert prepares Form 3CA/3CB + Form 3CD, (5) UDIN generation on udinportal.gov.in, (6) e-filing on incometax.gov.in, and (7) assessee accepts the report.
Yes, the same Expert can perform both the statutory audit (under Companies Act, 2013) and the tax audit (under Section 44AB of the Income Tax Act). However, the internal auditor of a company cannot be appointed as the tax auditor. The statutory auditor uses Form 3CA while a standalone tax auditor uses Form 3CB.
The Expert logs into incometax.gov.in and uploads the digitally signed Form 3CA or 3CB along with Form 3CD. The report must include a valid 18-digit UDIN from the relevant professional body. The assessee then logs in, reviews the uploaded report under the "Pending Actions" tab, and clicks "Accept" to finalise the filing.
Tax audit fees in India range from ₹5,000 to ₹15,000 depending on entity type, transaction volume, and complexity. IncorpX offers complete tax audit support starting at ₹7,999, covering books verification, Form 3CA/3CB and 3CD preparation, TDS review, GST reconciliation, UDIN generation coordination, and filing support by a qualified professional. Listed amounts are IncorpX professional charges for audit preparation and support assistance.
The ₹7,999 package includes 10 support deliverables: books of accounts verification, Form 3CA or 3CB preparation, Form 3CD compilation (all 44 clauses), TDS compliance review, GST reconciliation check, tax computation verification, statutory register review, coordination for UDIN generation, filing support on the IT portal, and dedicated professional support throughout the process.
Yes. For proprietorships and partnership firms (Form 3CB + 3CD), fees start at ₹7,999. For private limited companies and LLPs that also require statutory audit, the tax audit component using Form 3CA + 3CD starts at ₹9,999 due to additional cross-verification with the statutory audit report.
Tax audit under Section 44AB can only be conducted by a practicing Tax Professional registered under applicable professional regulations. Internal employees, accountants, or the assessee cannot perform the audit. The Expert must also generate a mandatory UDIN from the relevant professional body. Engaging a professional service ensures compliance and avoids Section 271B penalties up to ₹1,50,000.
Yes. The entire tax audit process can be completed 100% online. Documents are shared via secure portals, the Expert verifies books digitally, Form 3CD is prepared electronically, and the final report is uploaded on incometax.gov.in. IncorpX facilitates end-to-end online tax audit preparation and filing starting at ₹7,999 with a dedicated professional.
Tax audit charges for a proprietorship with turnover above ₹1 crore start at ₹7,999 at IncorpX. The audit covers Form 3CB + Form 3CD preparation, books verification, TDS review, and e-filing. Proprietorships with turnover above ₹10 crore or complex GST transactions have higher fees based on scope.
Begin preparation by July-August for the current financial year's audit. Finalise books of accounts, reconcile bank statements, compile GST returns, and gather TDS certificates by August. The tax audit report filing deadline is September 30 of the assessment year (CBDT may extend this; check the latest notification). Starting early avoids last-minute errors and penalties.
Yes. After the tax audit, IncorpX's Expert Team assists with ITR filing (due by October 31 for audit cases), addressing Income Tax Department notices, and clarifying audit observations. For ongoing compliance needs, our accounting services and income tax return filing packages are available.
Tax audit is conducted under Section 44AB of the Income Tax Act based on turnover/receipt thresholds. Statutory audit is mandated under the Companies Act, 2013 for all registered companies and LLPs above specified limits. Tax audit uses Form 3CB/3CD; statutory audit follows CARO format. Both can be done by the same professional.
No. Tax audit is a pre-filing verification of books by a qualified professional under Section 44AB, resulting in Form 3CA/3CB and 3CD. Income tax assessment is a post-filing review by the Assessing Officer under Sections 143/144/147, verifying the return filed. Tax audit is the assessee's obligation; assessment is an IT Department action.
Section 44AD is a presumptive taxation scheme allowing businesses with turnover up to ₹2 crore (₹3 crore if cash receipts do not exceed 5% of total gross receipts) to declare profit at 8% (6% for digital) without maintaining full books. Section 44AB mandates tax audit. If a 44AD taxpayer declares profit below 8%/6% and income exceeds the basic exemption limit, Section 44AB audit becomes mandatory.
For businesses, tax audit under Section 44AB triggers at turnover above ₹1 crore (₹10 crore where cash does not exceed 5% of total). For professionals (doctors, lawyers, tax experts, architects), the threshold is gross receipts above ₹50 lakhs under Section 44AB(b). Professionals under Section 44ADA (gross receipts up to ₹50 lakhs, or ₹75 lakhs if cash receipts do not exceed 5%) declaring below 50% profit also require audit.
Form 3CE is the audit report prescribed for non-resident taxpayers receiving royalty or fees for technical services in India under Section 44DA. It replaces Form 3CB for such non-residents and is prescribed under Rule 6G of the Income Tax Rules. Form 3CE is less common but relevant for foreign consultants earning income in India.
Based on our experience facilitating 800+ tax audits, common findings include: cash payments exceeding ₹10,000 under Section 40A(3), TDS short deductions or late deposits, GST return vs books mismatch under Clause 44, depreciation calculation errors, and Section 43B non-compliance where payments to PF/ESI were not deposited on time.
Yes, joint auditors can be appointed for a tax audit under Section 44AB. However, each Expert in a joint audit must individually comply with the 45-audit limit per financial year. Responsibilities for different segments of the audit must be clearly allocated among the joint auditors, and both must generate separate UDINs on the UDIN portal.
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