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.
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.
|
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. |
|
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. |
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
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.
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).
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.
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.
LLP Turnover Limits & Tax Requirements
Section 206C of Income Tax Act for TCS
Section 80GG deduction under Income tax act
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.
Only a Chartered Accountant (CA) registered with the ICAI can perform the audit and upload the report on the income tax portal.
As per the latest CBDT notification, the due date has been extended from September 30, 2025, to October 31, 2025.
No, it applies only to businesses or professionals whose turnover or receipts exceed the limits under Section 44AB.
Form 3CA, Form 3CB, and Form 3CD are used based on the taxpayer’s category and whether other statutory audits are applicable.
Yes, if it opts out of presumptive taxation and shows profits below 6% (digital) or 8% (cash), a tax audit becomes mandatory.
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.
Yes, it can be revised if any factual errors or omissions are found before filing the final income tax return.
Your Chartered Accountant prepares and uploads it through the CA login on the Income Tax portal, and you must approve it digitally.
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.
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