Tax Audit Service

Starting from ₹15,000 + GST

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Tax Audit Service

It’s a crucial service for financial compliance and growth. A tax audit is more than just a regulatory requirement; it is a vital process that ensures your financial records align with the provisions of the Income Tax Act, 1961. Conducted by a certified Chartered Accountant (CA), a tax audit verifies that your financial statements are accurate, transparent, and compliant with all legal norms. This process is essential for businesses, professionals, and freelancers looking to avoid penalties, build trust with stakeholders, and maximize their tax savings through lawful deductions and exemptions.

By undergoing a tax audit, you not only demonstrate compliance with tax laws but also strengthen the credibility of your financial records. The audit involves meticulous checking of income, expenses, and allowances, making sure that no detail is overlooked. With the growing complexity of tax regulations, a professional tax audit ensures your business avoids legal complications while optimizing its financial management.

Whether you are a small business owner, a startup, or a professional, a tax audit can offer insights into your financial health and highlight areas for improvement, giving you the confidence to focus on growth without worrying about compliance.

Benefits of a Tax Audit

Tax Law Compliance

Guarantees adherence to tax laws, reducing the risk of scrutiny or penalties

Accuracy Verification

Verifies the accuracy of financial statements and tax returns

Penalty Prevention

Timely audits prevent penalties under Section 271B for non-compliance

Trust & Credibility Building

Identifies errors and discrepancies in financial records, building trust with stakeholders like banks and investors

Optimized Tax Savings

Highlights allowable deductions, exemptions, and claims to minimize tax liabilities

Error Detection & Correction

Detects and rectifies inaccuracies in financial records

Who Needs a Tax Audit?

For Businesses

Annual turnover or gross receipts exceed ₹1 crore/ If 95% or more of transactions are digital, the turnover threshold increases to ₹10 crores /Profits declared are less than 6% (for digital transactions) or 8% (for cash transactions) of total turnover.

For Professionals

Gross receipts in a year exceed ₹50 lakhs.

Non-Compliance

Failing to meet the income tax filing threshold may also trigger a tax audit.

Tax Audit Process

Appoint a Qualified CA

Taxpayers must hire a qualified CA authorized to conduct tax audits.

Submit Financial Records

Complete financial records, including ledgers, cashbooks, and other supporting documents, must be submitted to the auditor.

Verification of Entries

The CA verifies entries related to income, expenditure, and tax relief against original documents.

Identify & Resolve Inconsistencies

Any inconsistencies or errors are highlighted, and supplementary documents may be requested for clarification.

Prepare Audit Forms (3CA/3CB/3CD)

The report is prepared using the following forms: Form 3CA: For entities audited under other laws (e.g., Companies Act). Form 3CB: For entities not audited under any other law.Form 3CD: A detailed annexure with particulars as required under tax law.

Upload Report to E-Filing Portal

The tax audit report is uploaded to the Income Tax Department’s e-filing portal along with the taxpayer’s acknowledgement.

Documents Required for Tax Audit

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    Financial Statements

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    Bank Records

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    Tax Documents

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    GST Records

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    Depreciation Details

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    Loan Agreements

Frequently Asked Questions

Have a look at the answers to the most asked questions.

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A tax audit under Section 44AB verifies the correctness and compliance of a taxpayer’s financial records with income tax laws.

Yes, freelancers need a tax audit if their gross receipts exceed ₹50 lakhs or if they declare profits below the prescribed threshold under presumptive taxation.

The report must typically be filed by 30th September of the assessment year, though extensions may be announced in certain cases.

A penalty under Section 271B can be as high as 0.5% of turnover or ₹1,50,000, whichever is lower, for non-compliance.

Yes, startups gain credibility with investors and stakeholders by complying with tax audit requirements and identifying potential savings.
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