Tax Audit

Tax Audit

Tax Audit under section 44AB of the Income Tax Act, 1961.

Tax Audit is an independent audit by a chartered accountant in full-time practice concerning the matters related to Taxation only and a report confirming that there is no concealment of income by the taxpayer and that there is no non-payment of tax liability and the same has is paid on due dates. The tax audit is a statutory obligation on the part of the taxpayer and is applicable on all cases where the turnover or the gross receipts during the previous year is more than the limit prescribed under section 44AB for the respective assessment year. The due date for filing the tax audit report is 30th September of the assessment year. In case the audit report is not submitted within its due date then the taxpayer is required to pay a penalty of an amount equal to 1.5% of the gross receipts/turnover, however, subject to a maximum fine of Rs. 1.5 lac.

TURNOVER OR GROSS RECIEPT LIMIT FOR TAX AUDIT FOR ASSESSEMENT YEAR 2020-21

SL.NO. TYPE OF TAXPAYER (ASSESSEE) TURNOVER FORMS APPLICABLE
1 Company 1 Crore 3CA and 3CD
2 LLP - Business Income 1 Crore 3CA and 3CD
3 LLP - Income From Profession 50 Lac 3CA and 3CD
4 Partnership - Business Income 1 Crore 3CB and 3CD
5 Partnership - Income From Profession 50 Lac 3CB and 3CD
6 Individual -Business Income 1 Crore 3CB and 3CD
7 Individual - Income From Profession 50 Lac 3CB and 3CD
8 Presumptive Business Income u/s 44AD 2 Crore 3CB and 3CD
9 Presumptive Profession Income u/s 44AD 50 Lac 3CB and 3CD

Requiremnts of Forms to be Submitted Under Section 44AB


1. For the individuals who are handling enterprises, below mentioned forms are applicable:

Form Number 3CD- the statement which displaying the relevant particulars.

Form Number 3CA- Audit Form.

2. Fo the individuals who don’t need to get audited with their account according to the provisions under any type of law, below mentioned forms are applicable.

Form Number 3CB- Audit form

Form Number 3CD- the statement which is showing the respective particulars.

Points To Know About Section 44AB For Filing Tax Audit Report:


Those individuals who are planning to get their accounts audited with the provisions of Section 44AB should file the report of audit with their income tax by September 30th of the particular assessment year. These people should e-file their income tax audit along with their income tax returns by attaching all the relevant documents. The individuals who are liable to get their accounts audited under Section 44AB of the Income Tax Act, if they fail to do it by the given time, they are liable to pay a penalty of 0.5% of the entire turn over within a year. Hoever, the penalty shouln’t be more than Rs.1.5 lakhs. In such scenarios, the individuals may be questioned about the failure of income tax return within given time. If the taxpayer is able to give a satisfactory and legitimate answer against the question, there will not be any imposition of penalty under section 271B.

1. Failure of tax audit due to sudden death of Chartered Accountant

2. Failure of e-filing income tax audit due to resignation of Accountant from his or her duty.

3. Delay of e-filing the tax audit due to any natural disaster.

4. The CA or the auditor not having proper access to the accounts of the individual in cases of theft or strikes.