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.
Appoint a Chartered Accountant with available capacity under ICAI limits.
The CA prepares Form 3CA/3CB and Form 3CD based on company records.
The report is uploaded on the Income Tax Portal using DSC.
The company’s authorized signatory accepts the report.
The audit report is linked to the company’s Income Tax Return (ITR).
|
Category |
Applicability |
|
Business (General) |
Turnover above ₹1 crore |
|
Business (95%+ digital transactions) |
Turnover up to ₹10 crores, cash ≤ 5% |
|
Professional services |
Receipts above ₹50 lakhs |
|
Presumptive scheme opt-out |
Declaring profits below prescribed rate under 44AD/44ADA |
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.
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.
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.
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 |
Tax Audit |
|
Mandatory under Companies Act, 2013 |
Mandatory under Income Tax Act, Section 44AB |
|
Applies to all Private Limited Companies |
Applies only when turnover crosses limits |
|
Focuses on the fairness of financial statements |
Focuses on tax compliance and disclosures |
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.
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
No. Every Private Limited Company must undergo statutory audit, but tax audit under Section 44AB is required only when turnover crosses the specified limits.
The CBDT has extended the due date to 31st October 2025.
ICAI allows a maximum of 60 tax audits per year from April 2026.
Yes, provided they have capacity under ICAI’s audit limits.
The penalty is 0.5% of turnover, up to ₹1,50,000 under Section 271B.
You can read our guide on Private Limited Company Audit Due Date FY 2024-25.
You can check it here: ICAI Announcement – July 2025.
No, presumptive schemes under 44AD and 44ADA apply only to individuals, HUFs, and partnerships, not companies.
Forms 3CA/3CB along with Form 3CD are filed on the Income Tax Portal.
A statutory audit ensures compliance with the Companies Act, while a tax audit ensures compliance with the Income Tax Act.
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