Services Details

A tax audit is a mandatory audit conducted under Section 44AB of the Income Tax Act, 1961 for certain individuals and entities whose turnover or gross receipts exceed the prescribed limits. The objective of the tax audit is to verify the accuracy of income declared, deductions claimed, and compliance with various provisions of the Income Tax Act.

Our firm undertakes tax audits in accordance with the guidance issued by the Central Board of Direct Taxes (CBDT) and Standards on Auditing prescribed by the Institute of Chartered Accountants of India (ICAI).

Scope of services includes:

• Determination of applicability of tax audit under various clauses of Section 44AB (business/profession turnover threshold, presumptive taxation exceptions, etc.)

• Review of books of accounts, tax computations, and statutory records

• Verification of compliance with TDS/TCS provisions, GST reconciliation, and other regulatory requirements

• Preparation and submission of Form 3CD and Form 3CA/3CB, as applicable

• Reporting of specified transactions and compliance with reporting requirements under clauses of Form 3CD

• Assessment of disallowances under sections such as 40(a)(ia), 40A(3), 43B, etc.

• Evaluation of depreciation, stock valuations, and provisioning methods as per tax laws

• Reconciliation of turnover and expenses with GST returns and other regulatory filings

• Review of transactions with related parties and reporting under specified clauses

• Coordination with management and accounting teams for clarification and documentation

• Timely filing of the tax audit report with the Income Tax Department portal

The audit ensures that the taxpayer's records comply with tax laws and that the income and claims are correctly reported, thereby supporting accurate tax assessments and reducing the likelihood of notices or scrutiny.