Tax Audit Services in Raipur
Income tax audit services under Section 44AB by Tulshyan & Co., Chartered Accountants in Raipur — accurate Form 3CD filing and full compliance.
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Quick Summary
A tax audit under Section 44AB of the Income Tax Act, 1961 is a mandatory examination of accounts for businesses and professionals crossing prescribed turnover or receipt thresholds. Unlike a statutory audit, which applies to every company regardless of size, a tax audit is triggered specifically by turnover, receipts, or how income is declared under presumptive taxation. At Tulshyan & Co., we handle tax audits for businesses, professionals, and firms across Raipur — accurate Form 3CD reporting.
What Is a Tax Audit?
A tax audit is an examination of a taxpayer's books of account by a practising Chartered Accountant, conducted specifically to verify compliance with the Income Tax Act, 1961. It results in an audit report — Form 3CA or 3CB, along with the detailed Form 3CD — which is filed electronically before the income tax return.
- Governed by Section 44AB of the Income Tax Act, 1961.
- Form 3CA applies when the entity is already audited under another law (for example, a company already subject to statutory audit under the Companies Act). Form 3CB applies to entities not audited under any other law, such as proprietorships and most partnership firms.
- Form 3CD is the detailed 44-clause statement of particulars filed alongside 3CA/3CB, covering everything from basic entity details to specific transaction-level disclosures.
- Must be completed and filed electronically before the income tax return is filed.
Who Needs a Tax Audit?
- Businesses: Tax audit applies once turnover exceeds ₹1 crore in a financial year. This threshold is enhanced to ₹10 crore if both cash receipts and cash payments each do not exceed 5% of total receipts/payments (i.e., at least 95% of transactions are digital/banking mode).
- Professionals: Tax audit applies once gross receipts exceed ₹50 lakh in a financial year — there is no enhanced digital-transaction threshold for professionals; this limit is fixed regardless of payment mode.
- Presumptive taxation taxpayers (Sections 44AD, 44ADA, 44AE): A tax audit can still apply if income is declared below the prescribed presumptive rate, or if a taxpayer eligible under Section 44AD opts out of the scheme for five consecutive years and their income exceeds the basic exemption limit thereafter.
- Due date: For FY 2025-26 (AY 2026-27), the tax audit report must be filed by 30th September 2026 (31st October 2026 where transfer pricing provisions apply).
Why a Tax Audit Matters
- Legal necessity, not a choice — once you cross the threshold, a tax audit is mandatory; there's no opting out.
- Reduces scrutiny risk — a properly conducted tax audit lowers the chances of a detailed departmental inquiry into your books later.
- Improves financial discipline — the audit process itself often surfaces bookkeeping gaps and compliance issues before they become bigger problems.
- Avoids stiff penalties — failure to get a tax audit done where required attracts a penalty under Section 271B of 0.5% of turnover, subject to a minimum of ₹1,50,000.
What Is Checked in a Tax Audit
- Verification of books of account against source documents — invoices, vouchers, bank statements, and ledgers.
- Reporting on tax depreciation and reconciling it with accounting depreciation.
- Disclosure of related-party and specified-person transactions, as required under the 44 clauses of Form 3CD.
- Compliance with TDS/TCS provisions — verifying that tax has been correctly deducted and deposited on applicable payments.
- Inventory and stock valuation methods, checked for consistency with accepted accounting standards.
- Disallowances under the Income Tax Act — expenditure of a capital nature, personal expenses debited to the P&L, and payments attracting disallowance under Sections 40A(3), 43B, and similar provisions.
- GST-to-books reconciliation — increasingly scrutinised, since mismatches between GST returns and audited turnover are a common trigger for tax notices.
Tax Audit vs Statutory Audit — What's the Difference?
These two are often confused, but they serve different purposes:
- A statutory audit is mandatory for every company under the Companies Act, 2013, regardless of turnover, and results in an opinion on whether the financial statements present a true and fair view.
- A tax audit is mandatory only once specific turnover/receipt thresholds are crossed, under the Income Tax Act, and focuses specifically on tax compliance and computation accuracy.
- A private limited company crossing the tax audit threshold undergoes both — the statutory audit first, followed by the tax audit, which relies on those already-audited accounts (using Form 3CA-3CD). A proprietorship or partnership crossing the threshold undergoes only the tax audit (Form 3CB-3CD), since there's no statutory audit requirement for these entity types.
See our Statutory Audit Services page if you need both.
Tax Audit Services by Tulshyan & Co.
Tulshyan & Co., Chartered Accountants in Kamal Vihar, Raipur, handles tax audits for businesses, professionals, and firms across Chhattisgarh — accurate Form 3CD preparation, correct clause-wise reporting, and on-time filing well ahead of the September deadline.
Get in touch with Tulshyan & Co. for tax audit services in Raipur that keep you compliant and penalty-free.
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At Tulshyan & Co., Chartered Accountants, We assure professional review of all the cases and solution to your queries. We are just an email and call away.
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Kamal Vihar (Kaushalya Mata Vihar), Raipur, Chhattisgarh – 492001
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