Tax Audit
Tax Audit is detail verification of books of accounts maintained by business & verify the accurateness of the income earned & deduction claimed by the assessee in the Income tax returns. Tax audit for FY 2019-20(i.e AY 20-21) shall be governed by the provisions ( Section 44AB ) & Rules laid down in the Income Tax Act 1961. This audit is conducted by Chartered Accountant Firm ensuring correct books of accounts maintained, legal provision complied & correct payment of Income Tax.
Tax Audit is independent verification of the books of accounts. During the audit Chartered Accountant (CA Firm) examines transactions of income , expenses , deductions etc. Tax audit due date for FY 2019-20 as per section 44AB of Income Tax Act 1961 is 30 September 2020. For Non filing of audit within due date penalty upto Rs. 150000 is applicable. A N Bhutada & CO is trusted Chartered Accountant Firm for your Tax audit requirement in Pune, Mumabi, Banglore , Delhi etc.
Objective of Tax Audit
- Ensuring that books of accounts are in line with tax laws and accounting policies
- Reporting under Form 3 CA / 3 CB / 3 CD
- Ensuring that books of accounts shows correct income tax payer
- Preparation of reports in standard way for tax authorities
Applicability of Tax Audit
- An individual who in engaged in business turnover > Rs. 100 Lac
- An individual who in engaged in profession turnover > Rs. 50 Lac
- An individual who qualifies for the presumptive taxation claims profit lower than limit
Turnover or Gross Receipt Limit For Tax Audit For 2019-20 ( A Y 2020-21)
| S.No | Type of Taxpayer | Turnover | Tax Audit Form |
|---|---|---|---|
| 1. | Company | 1 Crore | 3CA and 3CD |
| 2. | LLP – Business Income | 1 Crore | 3CA and 3CD |
| 3. | LLP – Income From Profession | 50 Lac | 3CA and 3CD |
| 4. | Partnership – Business Income | 1 Crore | 3CA and 3CD |
| 5. | Partnership – Income From Profession | 50 Lac | 3CA and 3CD |
Due Date of Tax Audit
Due date for tax audit for assesse for FY 2019-20 ( AY 2020-21 ) is 30 September 2020. If assesse who’s turnover/gross receipts crosses specified limit of section 44AB of Income Tax Act 1961, need to get books of account audited with in due date.
Tax Audit Penalty
Any taxpayer where tax audit is applicable & fails in tax audit filing in due date invites penalty under section 271B of Income Tax Act 1961. Penalty for non filing of tax audit shall be as below , penalty may be levied i.e lower of
- 0.5% of the total sales, turnover or gross receipts
- Rs 1,50,000
Tax Audit Report Format
Form 3CA
Form 3CA is part of tax audit report contain information of Name, Address & PAN. Name of auditor , Law under which accounts have been audited. Date of audit report , Period of Profit & Loss Account/ Income & Expenditure Account.
Form 3CB
In compliance with the rules set by the Income Tax Department of India, Form 3CB is part of an audit report. Date of balance sheet , Period of Profit & Loss Account/ Income & Expenditure Account, Address, where the books of accounts are kept.
Form 3CD
Form 3CD is part of Audit Reports in India, Form 3CD includes 32 Clauses and is an integral aspect of filing Income Tax returns in India. . A detailed explanation of each point of Form 3CD is important in audit.
Documents Required for Tax Audit by CA Firm
Below are initial documents required for by CA firm to start tax audit work:
- Trial balance
- Bank Statements
- GST Returns – GSTR 1, GSTR 3, 2B etc.
- TDS Returns, challans paid, working
- Sales, Purchases, Expenses proofs
- Details of Nature of business
- Login Details of GST, Income tax, PT etc.
- Stock Register
- Depreciation workings
- Payroll Register for year
Benefits of Professional Tax Audit Services by CA Firm
| Improved Tax Compliance | Lower Risk of Notices |
|---|---|
| Accurate reporting reduces errors and ensures compliance with Income Tax provisions. | Proper disclosures significantly reduce the chances of notices arising from incorrect reporting. |
| Better Financial Controls | Correct Claim of Expenses |
| Tax Audit helps identify accounting weaknesses and internal control issues. | Professional review ensures legitimate deductions are properly claimed while. |
| Accurate GST Reconciliation | Better Business Decision Making |
| Mismatch between GST and Income Tax data is identified before filing. Detail reconciliation between gst data. | Reliable financial information supports informed business decisions. |
Our Tax Audit Process
Step 1 – Initial Consultation
Understand your business structure and determine audit applicability.
Step 2 – Document Collection
Collect financial records securely through email or cloud sharing.
Step 3 – Review of Books
Our Chartered Accountants examine books of accounts and identify discrepancies.
Step 4 – Clarifications
We discuss observations with management and obtain supporting documentation.
Step 5 – Preparation of Audit Report
Preparation of Form 3CA/3CB and Form 3CD.
Step 6 – Online Filing
Upload the Tax Audit Report on the Income Tax Portal.
Step 7 – Client Acceptance
The taxpayer accepts the report online.
Step 8 – Return Filing Support
Assistance in filing the Income Tax Return after completion of the Tax Audit.
Why Choose A N Bhutada & Co. for Tax Audit Services?
Businesses searching online for the best CA firm for Tax Audit Services require more than just report filing. They need expert guidance that helps reduce tax risks and ensures complete statutory compliance.
Our advantages include:
- Qualified and experienced Chartered Accountants
- Complete Tax Audit under Section 44AB
- Accurate reporting in Form 3CA, 3CB & 3CD
- Review of accounting records before audit
- Identification of tax disallowances
- GST and income tax reconciliation
- Assistance in responding to tax notices
- Timely completion before statutory due dates
- Secure online document sharing
- PAN India service coverage
- Transparent professional fees
- Dedicated audit support throughout the assignment
Difference between Tax Audit & Statutory Audit
Tax Audit & statutory audit is governed by different law. For Companies under the companies act 2013 the audit is applicable irrespective of turnover of Company. Even in case of loss statutory audit is applicable. Statutory auditor required to do detail verification of books of account of company and express written true or fair view opinion. In case of LLP where turnover exceed Rs. 40 lac or contribution exceeds Rs. 25 Lakhs then it need to appoint CA firm for LLP audit. Tax audit is governed by Income Tax Act 1961 it have different objective , scope of work , applicability , due date & audit format. Auditor need to prepare audit report in specified format, ie. 3CA/ 3CB and 3CD about findings during the audit & trace for any revenue loss if any. Its like a health checkup of assesse by CA firm on behalf of Income Tax department. Scope of Tax audit is more related to compliance with income tax Act.
What We Offer
Personal Consulting
From 3 CD
From 3 CB
CA Certification
Financial Statement
Send me all information about Tax Audit in my mailbox
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Tax Filing Due Date for FY 2019-20
| Audit Type | Mandatory For | Due Date | Statutory Compliances | Mode of Audit submission | Who can do Audit | Audit Section |
|---|---|---|---|---|---|---|
| Tax Audit | Turnover > Rs. 200 / 50 lac | 30 Sept 2020 | Yes | Online | CA | 44 AB |
| GST Audit | Turnover > Rs. 200 Lac | 30 June 2020 | Yes | Online | CA/CMA | 35(5) |
| Statutory Audit | For Companies | 30 Sept 2020 | Yes | Online | CA | Section 133 |
| Trust Audit | For Trust | 31 July 2020 | Yes | Online & Offline | CA | Section 11 & 12 |
| Society Audit | For Society | 31 July 2020 | Yes | Online & Offline | CA & Other | Section 81 |
Frequently Asked Questions for Tax audit by CA Firm
Who can conduct a Tax Audit?
Only a practicing Chartered Accountant holding a valid Certificate of Practice can conduct a Tax Audit under Section 44AB.
Is GST Audit the same as Tax Audit?
No. Tax Audit is conducted under the Income Tax Act, whereas GST compliance is governed by the GST laws. Although GST Audit provisions have changed over time, GST reconciliations remain an important part of tax compliance.
Can the Tax Audit be completed online?
Yes. Most documentation, review meetings, and report filing can be completed digitally.
How long does a Tax Audit take?
Depending on the size and complexity of the business, a Tax Audit generally takes a few days to several weeks after receiving complete documents.
Why should I hire a professional CA firm for Tax Audit?
An experienced Chartered Accountant ensures accurate reporting, compliance with legal provisions, timely filing, and professional advice to reduce tax risks.
