Tax Audit for Private Limited Companies : Rules, ICAI Guidelines, and Extended Due Date 

Introduction

A Tax Audit ensures that the financial statements of a Private Limited Company meet the requirements of the Income Tax Act. It becomes mandatory under Section 44AB once turnover or receipts exceed specified limits. With ICAI’s restrictions on the number of audits per Chartered Accountant and CBDT’s extension of the deadline for AY 2025-26, it is important for companies to stay updated.

Tax Audit Process for Private Limited Companies  

1. Appoint a Chartered Accountant with available capacity under ICAI limits.

2. The CA prepares Form 3CA/3CB and Form 3CD based on company records.

3. The report is uploaded on the Income Tax Portal using DSC.

4. The company’s authorized signatory accepts the report.

5. The audit report is linked to the company’s Income Tax Return (ITR).

Applicability of Tax Audit  

For statutory audit deadlines under the Companies Act, you can also check our detailed guide on Private Limited Company Audit Due Date FY 2024-25.

Extended Due Date for AY 2025-26  

The CBDT has extended the due date for filing Tax Audit Reports for AY 2025-26 from 30th September 2025 to 31st October 2025.

This extra month gives companies more time, but it is still advisable to complete the audit early to avoid technical glitches or last-minute errors.

ICAI Limit on Tax Audits  

The Institute of Chartered Accountants of India (ICAI) has capped the number of tax audits a Chartered Accountant can undertake at 60 per year, effective from 1st April 2026.

• This applies to both individual CAs and partners in firms.

• Audits conducted under presumptive taxation schemes are not counted in the limit.

• Revised reports do not reduce the audit count.

You can review the official notification here: ICAI Announcement – July 2025.

Penalty for Non-Compliance  

If a company fails to file the Tax Audit Report on time:

• A penalty of 0.5% of turnover or ₹1,50,000 (whichever is lower) may be levied under Section 271B.

• Relief is possible under Section 273B for genuine reasons such as natural disasters, illness, or technical issues.

Statutory Audit vs Tax Audit  

Conclusion  

For a Private Limited Company, a Tax Audit is as important as a statutory audit but serves a different purpose. With ICAI audit limits and the CBDT extending the filing deadline to 31st October 2025, companies should prepare early to ensure timely compliance.

Suggested Read :

Understanding Presumptive Taxation under Section 44AD, 44ADA & 44AE

Income Tax Return(ITR) Compliance Calendar With Due dates for FY 2025-26

What is Form 3CD?”, “What is Form 3CB?

ROC Annual Compliance Calendar for Pvt Ltd Company FY 2024-25

FAQs on Tax Audit and Tax Audit Return