Skip to content
  • +91-8700032203
  • +91-7982044611
  • ADMIN@AURIGAACCOUNTING.IN
Facebook Twitter Instagram Linkedin Youtube Pinterest Tumblr Reddit
Auriga accounting
Edit Content
talk to expert
Auriga accounting
Edit Content
talk to expert
Auriga accounting
CONTACT US
talk to expert
Auriga accounting
MENU
Edit Content
auriga accounting

Follow us

Facebook Twitter Instagram Linkedin Youtube Pinterest Tumblr Reddit

TAX AUDIT

A tax audit in India is a vital process that involves reviewing and analyzing tax returns submitted by individuals or businesses to ascertain their exact income tax liability. Familiarity with the relevant rules, forms, and penalties related to income tax audits is crucial for ensuring accurate calculation of tax obligations for both individuals and companies.

Complete Your  Audit Report

Tax Audit. Online with Auriga Accounting

  • Connect with our Experts
  • Submit Your Required Documents
  • Track Application Status
  • Received your Certificate

Apply NOW..

Why Should I Use Auriga Accounting of Tax Audit?

Auriga Accounting has a team of registration experts who can provide complete guidance to Tax Audit.

book appointment

Our team of experts will get in touch with you and collect all necessary documents and details

Resolve all your queries

We fill out and file your application for Audit Report

Complete your Aduit Report

Complete Your Tax Audit

Why Should I Use Auriga Accounting of Tax Audit ?

Auriga Accounting has a team of registration experts who can provide complete guidance to Tax Audit .

book appointment

Our team of experts will get in touch with you and collect all necessary documents and details

Resolve all your queries

We fill out and file your application for External Audit

Complete your Audit Report

Complete Your Tax Audit

Overview
Objectives
Turnover
How?
Due Date
Penalty

OVERVIEW - Tex Audit

During a tax audit, the auditor is required to compile their findings into a report using designated ‘Audit Forms’ as stipulated by the Income Tax Department. Specifically, Forms 3CA and 3CB must be utilized in accordance with Section 44AB, and the auditor is also obligated to include Form 3CD alongside these forms. We will delve deeper into the details of these forms below.

Once the Chartered Accountant finalizes the tax audit report, it is submitted electronically to the Income Tax Department. Subsequently, the taxpayer is responsible for reviewing and approving the tax audit report through their Income Tax Return (ITR) filing account.

What is a Tax Audit?

A tax audit is a review of a business or professional entity’s accounts from an income tax perspective. It ensures compliance with the Income Tax Act, 1961 for individuals or companies exceeding specified turnover limits.

Various audits exist under different laws, such as:

  • Statutory Audit under company law
  • Cost Audit
  • Stock Audit

 

What is Annual Compliance For a One person Company?

Objectives of Tax Audit

A tax audit is conducted to fulfill the following objectives:

  • Ensure proper maintenance and accuracy of books of accounts, certified by a Chartered Accountant (tax auditor).
  • Report observations and discrepancies found during a systematic review of the books of accounts.
  • Provide prescribed information such as tax depreciation and compliance with income tax provisions.
  • Simplify the computation of tax and deductions through audited records.
  • Verify the accuracy of income, tax, and deductions declared by the taxpayer in the income tax return.

Turnover Limit for Income Tax Audit

A tax audit is mandatory if a taxpayer’s sales, turnover, or gross receipts exceed specific limits as per the Income Tax Act, 1961. The threshold limits are:

  • Business:
    • Turnover exceeds ₹1 crore in a financial year.
    • Turnover up to ₹10 crores if cash transactions (receipts/payments) do not exceed 5% of total transactions.
  • Profession:
    • Gross receipts exceed ₹50 lakh in a financial year.

Category

Tax Audit Requirement

Business (not opting for presumptive taxation)

Turnover exceeds ₹1 crore (or ₹10 crore if cash transactions ≤ 5%)

Business (presumptive taxation under Sec. 44AE, 44BB, 44BBB)

Declares profits lower than the prescribed limit

Business (presumptive taxation under Sec. 44AD)

Declares taxable income below the presumptive tax scheme limit and total income exceeds ₹2.5 lakh

Business (opted out of presumptive taxation under Sec. 44AD)

If total income exceeds the basic exemption limit for 5 consecutive years after opting out

Profession

Gross receipts exceed ₹50 lakh

Profession (presumptive taxation under Sec. 44ADA)

Declares profits lower than 50% of gross receipts and income exceeds the basic exemption limit

Business Loss

If turnover exceeds ₹1 crore and taxpayer’s total income exceeds the basic exemption limit

How to File a Tax Audit Report?

Filing a tax audit report involves coordination between the taxpayer and a Chartered Accountant (CA) through the Income Tax e-filing portal. The process includes:

  1. Assigning the Audit Form:
    • The taxpayer assigns Form 3CA-3CD (or Form 3CB-3CD) to their CA via the e-filing portal.
  1. CA’s Role:
    • The CA accepts the assignment and completes the form using the offline utility.
    • After filling out the audit details, the CA uploads the form and supporting documents on the e-filing portal.
  1. Taxpayer’s Review & Submission:
    • The taxpayer reviews and electronically verifies the completed audit report using a Digital Signature Certificate (DSC).
    • Upon successful submission, both the taxpayer and CA receive a confirmation message.



Due Date for Filing a Tax Audit Report

  • The tax audit report under Section 44AB must be filed by 30th September of the assessment year.
  • If the taxpayer is liable for a transfer pricing audit, the due date is 30th November of the assessment year

Penalty for Non-Filing of Tax Audit Report

Failure to comply with the tax audit requirement may attract a penalty under Section 271B of the Income Tax Act:

  • Penalty Amount: 0.5% of turnover or gross receipts, up to a maximum of ₹1,50,000.
  • Exemptions from Penalty: The penalty may be waived for valid reasons, such as:
    • Natural disasters or unforeseen calamities.
    • Resignation of the CA, causing audit delays.
    • Labour disputes, strikes, or lockouts.
    • Loss of accounting records due to uncontrollable circumstances.
    • Illness or death of the responsible partner handling accounts.

Get more details

Our Happy Clients!

Excellent
Based on 12 reviews
MD SAHIL
MD SAHIL
2023-06-10
Auriga Accounting is right CA firm is crucial for the financial health of our business. Auriga Accounting is reputable firm with experienced professionals, strong technology infrastructure, good communication, and transparent pricing.
Prince Kushwaha
Prince Kushwaha
2023-06-10
Workplace must be peaceful and be active during work , the Auriga Accounting Private Limited provides relevant and necessary things so employees save their time and complete their task before time period effectively and efficiently
Prince Singh
Prince Singh
2023-06-10
Auriga accouting private limited and it's team provide best service at affordable price. I have done my previous year GSTR and ITR they did it before the time
Priyanka Kumari
Priyanka Kumari
2023-04-07
They are best coordination with me. Time to time inform me how to work and what work is my pending. Time to time updated me about my company profile work like ROC Filling last date, GST filling last date, ITR etc... I have no paid any penalty since I started working with Auriga..
Vishal Singh
Vishal Singh
2023-04-07
Best company for providing services, I recommended to all. They give me the best rate of price and finished work before the time.
Sameer khan
Sameer khan
2023-04-07
The auriga accounting private limited is a reliable and a customer support company the team has give Clear answer towards the customer by which the customer cannot get confused and get necessary detail to solve their queries and auriga provided me good service and delivered my work on time very well coordinate with me and talk very well I suggest if you have any work then call auriga they will definitely finish your work on time
Vivek Shakya
Vivek Shakya
2023-04-07
Great Services , within affordable rate and give full satisfaction on works. Easy to Cordinate, I have done My Previous year ITR , Startup Registration. I am very happy with their services and their first priority is their Customer.
find way
find way
2023-04-06
I'll give a five-star rating, I had doubts about how to start my work in the field of business and they guide me and instruct me on how to start a business. They have a great team.
623 Anjali
623 Anjali
2023-04-06
The Auriga has great services. Efficient communication and really easy way to get help and support.
Anjali Sharma
Anjali Sharma
2023-04-06
Auriga Accounting team represents the highest level of customer services I have experienced.The team gives accurate information and responses to queries very fast, which are customer is facing.

Trusted by 400,000 clients and counting, including …

idbi bank
wipro
ajio
fresh to home
haldiram
bharat petroleum
Swiggy
ola
mrf
Maruti_Suzuki
Havells
Auriga accounting

About

Auriga provide expert services which can get your new business off to a flying start. We are Compliance and finance officers for your business. Here you get simple and affordable online company registration and range of essential services. A world class technology – driven platform, offering end to end service from startup to well established firm.

BUSINESS REGISTRATION

TAX REGISTRATION

COMPLIANCES

Contact Detail

  • +91-7982044611
  • +91-8700032203
  • Admin@aurigaaccounting.in
  • 163 D/1, Khirki Extension, Malviya Nagar, New Delhi, Delhi 110017

follow us

Facebook Twitter Instagram Linkedin Youtube Pinterest Tumblr Reddit

By continuing past this page, you agree to our Terms of Service,Cookie Policy,Privacy Policy,Refund Policy and Content Policies.
© AURIGA ACCOUNTING PRIVATE LIMITED | 2021 | All Rights Reserved

×