Tax Audit Under Section 44AB
Mandatory audit and reporting for businesses and professionals above threshold limits
Ashish Jayalata & Associates conducts tax audits under Section 44AB of the Income Tax Act, 1961, and files audit reports in the prescribed forms (3CA-3CD for entities already subject to a statutory audit, and 3CB-3CD for others). The practice handles tax audit compliance for businesses and professionals in Ghaziabad, Sahibabad, and across the NCR, ensuring timely completion and accurate reporting.
What This Includes
- Tax Audit Report Filing: Preparation and filing of the tax audit report in Form 3CA-3CD (for persons required to get accounts audited under any other law) or Form 3CB-3CD (for persons not subject to any other audit) on the income tax e-filing portal.
- Part III-D Reporting: Detailed reporting under Clause 44 of Form 3CD — break-up of total expenditure, payments to residents and non-residents, amount of expenditure claimed under Section 40(a)(ia), 40A(3), and other disallowance provisions.
- Clause 44 Reporting: Reporting on the mode of receipt and payment — cash, cheque, digital — and compliance with Section 269SS and 269T (receipt and repayment of loans and deposits in cash exceeding prescribed limits).
- TDS/TCS Compliance Review: Verification of TDS deduction and deposit compliance, with reporting on amounts not deducted, not deposited, or deducted but not deposited within the prescribed time under Clause 26 and 27 of Form 3CD.
- Turnover Verification: Verification of turnover and gross receipts against GST returns, bank statements, and books of accounts to ensure accuracy of the reported figures.
- Disallowance Analysis: Computation of disallowances under Sections 40, 40A, and 43B of the Income Tax Act, including disallowance of expenses where TDS is not deducted or deposited.
- Presumptive Taxation Review: Review of compliance with presumptive taxation provisions under Sections 44AD, 44ADA, and 44AE, including assessment of applicability and disclosure in the audit report.
Who It's For
Tax audit under Section 44AB is applicable to: (a) businesses with total sales, turnover, or gross receipts exceeding ₹1 crore in the previous year (₹10 crore where cash receipts and payments are each below 5% of total); and (b) professionals with gross receipts exceeding ₹50 lakh. It also applies to persons who declare income below the presumptive rate under Sections 44AD or 44ADA when total income exceeds the basic exemption limit, and to persons opting out of presumptive taxation where turnover exceeds the eligible threshold.
Our Process
1
Enquiry & Analysis — Understanding the business structure, turnover, and applicable provisions. Determining the correct form (3CA-3CD or 3CB-3CD) and applicable clauses.
2
Data Collection & Audit Procedures — Collecting books of accounts, bank statements, GST returns, TDS records, and depreciation schedules. Verifying turnover, expenses, and compliance with various provisions.
3
Report Preparation — Preparing the audit report with all required clauses — expenditure break-up, TDS compliance, disallowances, cash transactions, and other statutory disclosures.
4
Filing & Confirmation — Filing the audit report on the e-filing portal within the due date and providing the client with a copy of the filed report and key observations.
Documents Required
- Books of accounts (journals, ledgers, trial balance)
- Bank statements (all accounts for the financial year)
- GST returns (GSTR-1 and GSTR-3B for the financial year)
- TDS returns and TDS challans (Forms 24Q, 26Q, 27Q)
- Depreciation schedule and fixed asset register
- Sales and purchase registers
- Loan agreements and borrowings documents
- Previous year's tax audit report (if applicable)
- Stock/inventory records (if applicable)
Frequently Asked Questions
Who is required to get a tax audit done?
A tax audit under Section 44AB is mandatory if your business turnover exceeds ₹1 crore in a year. The limit is ₹10 crore if at least 95% of receipts and payments are digital. A profession with gross receipts above ₹50 lakh also requires an audit. We assess your turnover and confirm whether the audit applies before you engage us.
Which form do you use for the tax audit report?
We prepare Form 3CA when accounts are already audited under the Companies Act or other law, and Form 3CB when no statutory audit exists, along with Form 3CD which contains the detailed statement of particulars. Both are signed by the Chartered Accountant and uploaded on the income tax portal before the audit report due date.
When is the tax audit report due?
For FY 2025-26, the tax audit report under Section 44AB is due by 30 September 2026. If you also need to file the return, the ITR for audit cases is due by 31 October 2026. Filing after these dates attracts a late fee under Section 271F. We track these dates for our clients and complete the work in advance.
What documents do you need for the tax audit?
We need your trial balance, books of accounts, bank statements, purchase and sales registers, fixed asset schedule, loan statements, and details of outstanding debtors and creditors. For digital transaction checks, we also need the cash versus bank receipt and payment summary. A complete checklist is shared once you engage us.
How much does a tax audit cost in Ghaziabad?
Tax audit fees depend on the size of your business, the volume of transactions, and whether books are already maintained in a usable format. We quote a fixed fee after reviewing your turnover and records, with no hidden charges. You will also need to budget separately for the income tax return filing fee.
What common disallowances do you check in a tax audit?
We review items that auditors commonly flag — cash payments above the prescribed limit under Section 40A(3), interest on borrowed capital, unpaid statutory dues, personal expenses, depreciation claims, and any non-business expenditure. Catching these during the audit helps you avoid questions from the department during assessment.
Can I avoid a tax audit by opting for presumptive tax?
If you are eligible for presumptive taxation under Section 44AD (turnover up to ₹2 crore) or Section 44ADA (profession receipts up to ₹75 lakh), you can declare income at the prescribed percentage and avoid a tax audit. There are conditions, such as the digital payment requirement under 44AD. We confirm your eligibility first.
Need help with tax audit under Section 44AB in Ghaziabad, Sahibabad, or NCR? Contact the office to discuss your requirement.
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