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?  

Forms Used in Tax Audit Filing  

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

• Compliance with TDS and GST provisions

• 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.

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.

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