-
December 9, 2025
Tax Audit under Section 44AB of Income Tax Act
Introduction
Every business or professional in India earning beyond a specific threshold must undergo a Tax Audit under Section 44AB of the Income Tax Act. This audit acts as a check to ensure that taxpayers correctly report their income, expenses, and deductions in their Income Tax Returns. It helps the government verify whether books of accounts are maintained properly and all provisions of the Act are followed.
A tax audit is not just a formality; it also ensures financial transparency and accuracy in tax computation. It builds credibility for businesses, especially when applying for loans or government tenders. For Assessment Year (AY) 2025-26, the Central Board of Direct Taxes (CBDT) has officially extended the due date for filing Tax Audit Reports from September 30, 2025, to October 31, 2025, giving taxpayers an extra month to complete their filings.
At Ebizfiling, we help businesses and professionals understand whether they fall under the ambit of Section 44AB and assist in completing the audit filing process within the prescribed deadline to avoid penalties.
What is Tax Audit under Section 44AB?
A tax audit is an examination of the financial records of a taxpayer by a Chartered Accountant to verify the correctness of income, deductions, and claims reported under the Income Tax Act, 1961.
The primary goal of Section 44AB is to ensure that books of accounts are properly maintained and that the Income Tax Return (ITR) reflects accurate financial information.
Who Needs to Get a Tax Audit Done?
|
Type of Taxpayer |
Threshold Limit for AY 2025-26 |
Conditions / Remarks |
|
Business |
Turnover exceeds ₹1 crore |
Mandatory tax audit. |
|
Business (Opting for Section 44AD) |
Turnover up to ₹2 crore but profit shown below 6% (digital) or 8% (cash) of turnover |
Tax audit required. |
|
Business (Non-Cash Receipts ≤ 5%) |
Turnover limit increased to ₹10 crore |
Applies only if cash transactions are minimal. |
|
Professionals (Section 44ADA) |
Gross receipts exceed ₹50 lakh |
Tax audit mandatory. |
|
Presumptive Income Declared Lower Than Prescribed |
Applicable |
Tax audit required if income is below presumptive limit and total income exceeds the basic exemption limit. |
Forms Used in Tax Audit Filing
|
Form |
Applicability |
Purpose |
|
Form 3CA |
For taxpayers who are already required to get their accounts audited under any other law (like Companies Act) |
Report of audit under Section 44AB where other statutory audits exist. |
|
Form 3CB |
For taxpayers who are not required to get accounts audited under any other law |
Audit report specifically under the Income Tax Act. |
|
Form 3CD |
Statement of particulars to be filled along with 3CA or 3CB |
Contains detailed financial, compliance, and deduction information. |
What Details Are Included in Form 3CD?
Form 3CD includes a detailed breakdown of:
-
Nature of business or profession
-
Details of depreciation, deductions, and disallowances
-
Quantitative stock details
-
Information on loans, advances, and related party transactions
-
Audit observations, if any
What Is the Due Date for Filing the Tax Audit Report?
The tax audit report must be uploaded electronically by a Chartered Accountant using their digital signature before the due date.
-
Original Due Date (AY 2025-26): September 30, 2025
-
Extended Due Date (as per CBDT Notification): October 31, 2025
This extension allows businesses and professionals additional time to finalize their audited statements and file accurate reports.
What Happens If You Miss the Tax Audit Deadline?
Non-compliance under Section 44AB may lead to a penalty under Section 271B of the Income Tax Act.
|
Nature of Default |
Penalty Imposed |
|
Failure to get accounts audited or file report by due date |
0.5% of turnover or gross receipts (maximum ₹1,50,000) |
However, no penalty is levied if the taxpayer can prove that the delay occurred due to a reasonable cause (such as illness or system failure).
How Ebizfiling Helps with Tax Audit Compliance?
At Ebizfiling, we help businesses and professionals manage their Tax Audit under Section 44AB efficiently.
Our team assists with:
-
Assessing audit applicability based on turnover and profit
-
Preparing and reviewing financial records
-
Filing Form 3CA/3CB and Form 3CD online
-
Coordinating with Chartered Accountants for report submission
-
Ensuring compliance with the latest CBDT updates and Income Tax deadlines
With professional support, you can focus on business growth while we handle your statutory tax audit requirements.
Conclusion
A Tax Audit under Section 44AB of the Income Tax Act ensures that taxpayers maintain transparency and accuracy in financial reporting. With the extended deadline of October 31, 2025, businesses and professionals have additional time to comply. Timely tax audit filing not only avoids penalties but also strengthens your financial credibility.
Suggested Read :
LLP Turnover Limits & Tax Requirements
Section 206C of Income Tax Act for TCS
Section 80GG deduction under Income tax act
FAQs
1. What is the main purpose of a Tax Audit under Section 44AB?
It ensures that income, expenses, and claims reported in your Income Tax Return are accurate and in line with the Income Tax Act. It also promotes transparency in financial reporting.
2. Who is responsible for conducting a Tax Audit?
Only a Chartered Accountant (CA) registered with the ICAI can perform the audit and upload the report on the income tax portal.
3. What is the due date for filing the Tax Audit Report for AY 2025-26?
As per the latest CBDT notification, the due date has been extended from September 30, 2025, to October 31, 2025.
4. Is every business required to undergo a Tax Audit?
No, it applies only to businesses or professionals whose turnover or receipts exceed the limits under Section 44AB.
5. What forms are used for Tax Audit filing?
Form 3CA, Form 3CB, and Form 3CD are used based on the taxpayer’s category and whether other statutory audits are applicable.
6. Can a small business below ₹1 crore turnover be audited?
Yes, if it opts out of presumptive taxation and shows profits below 6% (digital) or 8% (cash), a tax audit becomes mandatory.
7. What are the penalties for missing the audit deadline?
Under Section 271B, a penalty of 0.5% of turnover (maximum ₹1,50,000) may be levied if you fail to get accounts audited on time.
8. Can the Tax Audit Report be revised after submission?
Yes, it can be revised if any factual errors or omissions are found before filing the final income tax return.
9. How is Form 3CD filed online?
Your Chartered Accountant prepares and uploads it through the CA login on the Income Tax portal, and you must approve it digitally.
10. How can Ebizfiling help with Tax Audit compliance?
Ebizfiling manages end-to-end Tax Audit filing — from assessing applicability and preparing documents to filing Form 3CA/3CB and 3CD online before the due date.
Income Tax Returns
Get Your Income Tax Returns Filed seamlessly with Ebizfiling Experts Now!
About Ebizfiling -
Reviews
DEEPAK BAGRA
08 Sep 2018I find the service, working approach and commitments very professional. Their progress updates are commendable. I really liked working with them.
Rajesh Moza
16 Jul 2020For starting a new a company or applying to become a Director of a company, to procure Digital signature/Trademark & other IPRs etc Ebizfiling India Pvt Ltd is there to do all these jobs through single window service. Ebizfiling is a complete online service platform and people working here are young professionals. They have been very honest with me, whatever they promised initially, they did it. I feel rates quoted by this company were lowest in comparison to others and they cleared all my doubts, wherever needed.
December 12, 2025 By Dhruvi
Should business advisors learn fundraising compliance basics? To Start With, When a founder begins their startup journey, the first person they usually speak to is a business advisor, not a lawyer or an accountant. Advisors become the early voice of […]
October 30, 2025 By Dhruvi
ITR Filing Extension F.Y. 2024-25: Common Mistakes to Avoid Before the New Deadline Introduction The CBDT has extended the due dates for ITR filing and audit report submissions for FY 2024-25. The new ITR filing deadline is now 10th December […]
November 14, 2025 By Dhruvi
7 Essential Skills CAs Should Learn in 2025 for Growth Introduction As a content writer at Ebizfiling, I interact with Chartered Accountants and professionals almost every day. Over time, I have realized that the role of a CA is not […]