A tax audit is not just a signature; it is a clause by clause examination of your books that the Income Tax Department relies on. Errors in Form 3CD invite scrutiny of the whole return.
Krishna TaxNova conducts tax audits with a structured checklist approach: books review, statutory cross checks, clause wise 3CD reporting and clear communication of issues before anything is filed.
What is Tax Audit?
Tax audit under section 44AB applies when business turnover exceeds one crore rupees (ten crore where cash transactions are under five percent) or professional receipts exceed fifty lakh rupees, and in certain presumptive scheme cases where declared profit is below the deemed rate. The auditor files Form 3CA or 3CB with the detailed statement of particulars in Form 3CD by 30 September.
Who Should Apply for Tax Audit?
- Businesses with turnover above the section 44AB thresholds
- Professionals with gross receipts above fifty lakh rupees
- Presumptive taxpayers declaring profit below the deemed rate
- Entities whose lenders or investors require audited tax reports
Benefits of Tax Audit
Statutory Compliance
Timely audit and filing avoids penalty of up to one and a half lakh rupees under section 271B.
Clean 3CD Reporting
Accurate clause reporting prevents automated flags that trigger scrutiny.
Issues Fixed Before Filing
Disallowances and reporting gaps are discussed with you first, never sprung in the report.
Better Financial Discipline
Audit observations strengthen your accounting for the following year.
Bank Ready Financials
Audited accounts carry weight with lenders and large customers.
Documents Required for Tax Audit
Keep these documents ready. You can upload them using the form on this page or send them to us on WhatsApp.
- Books of accounts: ledgers, cash book and bank book
- Financial statements for the year
- GST returns and reconciliation
- TDS returns and challans
- Loan statements and interest certificates
- Fixed asset register
- Previous year’s audit report, if any
Step by Step Process for Tax Audit
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Step 1: Engagement and Planning
We confirm applicability, timelines and the document list for your business.
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Step 2: Books Review
Ledger scrutiny, vouching of major items and statutory cross checks with GST and TDS records.
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Step 3: Draft Discussion
Observations, disallowances and clause positions are discussed with you openly.
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Step 4: Form 3CD Preparation
The complete statement of particulars is prepared and reviewed by a senior CA.
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Step 5: Filing and Handover
The audit report is filed on the portal and accepted by you, with a copy of all working papers.
Tax Audit at a Glance
Estimated Timeline
2 to 4 weeks depending on books quality; due 30 September
Governing Authority
Income Tax Department, CBDT
Validity
Annual requirement while thresholds are crossed
Government Fees
Penalty for failure is 0.5 percent of turnover up to 1.5 lakh rupees
Why Choose Krishna TaxNova for Tax Audit?
We audit to protect you, flagging risks in language you understand and fixing what can be fixed before filing, rather than reporting problems you never got to see.
CA Led Team in Delhi
Your work is handled by a qualified Chartered Accountant team, not a call center. You get correct advice the first time.
Upload Documents Online
Share everything from your phone or laptop. Use the secure upload form on this page or simply WhatsApp us your documents.
Transparent Pricing
You approve a clear quote before we start. No hidden charges at any stage.
End to End Support
From document collection to final approval and post registration compliance, one team stays with you throughout.
Tax Audit: Frequently Asked Questions
Is tax audit required if I opt for presumptive taxation?
Not if you declare profit at or above the deemed rate within the turnover limits. Audit triggers when you declare lower profit than the deemed rate and your income exceeds the basic exemption.
What is the difference between statutory audit and tax audit?
Statutory audit under the Companies Act examines financial statements for shareholders; tax audit under section 44AB reports specific tax particulars to the department. A company may need both; we coordinate them efficiently.
What does the ten crore threshold mean?
If your cash receipts and cash payments are each under five percent of totals, the audit threshold rises from one crore to ten crore rupees. Digital heavy businesses often escape audit through this relaxation.
What if my books are incomplete?
We first help you complete and reconcile the books; audit quality depends on them. Our accounting team can rebuild ledgers from bank statements and invoices where needed.
How long does Tax Audit take?
In most cases the work is completed in 2 to 4 weeks depending on books quality; due 30 September. The exact time depends on how quickly documents are shared and on processing time at the department. We keep you updated at every stage.
What documents are needed for Tax Audit?
The key documents include books of accounts: ledgers, cash book and bank book, financial statements for the year, gst returns and reconciliation, tds returns and challans. Our team shares a simple checklist after the first call so nothing is missed.
Can I complete Tax Audit fully online?
Yes. The entire process is online. Fill the form on this page, upload your documents or WhatsApp them to us, and our experts handle the filings. You do not need to visit any office.
Which authority handles Tax Audit?
Tax Audit falls under Income Tax Department, CBDT. Krishna TaxNova prepares and files your application in the required format and responds to any queries raised by the department.
What is the validity of Tax Audit?
The validity is annual requirement while thresholds are crossed. We send renewal and compliance reminders in advance so you never miss a due date.
Do you provide Tax Audit outside Delhi?
Yes. We are based in Delhi and serve clients across India. Since the process is fully online, your location does not matter. Documents can be shared through the website or WhatsApp.
Get Tax Audit Done by Experts
Fill in your details, upload your documents online or send them on WhatsApp. A qualified CA will review your case and call you back with the exact steps and a fixed quote.