A clear answer on whether your practice needs a tax audit, and the audit itself when it does.
Reviewed by CA Rinky Vishwakarma (ICAI No.: 177507) · Last updated
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For professionals the test is gross receipts, including fees, consultation and procedure charges, and any share from hospitals. If receipts are above Rs 50 lakh, the audit applies. If you choose the presumptive scheme and meet its limits, you may avoid the audit, but declaring a lower profit above the exemption limit brings it back.
Clinics set up as companies or LLPs follow company and LLP audit rules, which we cover in statutory audit and LLP audit. For doctors who need regular books, see accounting for doctors and clinics.
| Structure | Audit that applies |
|---|---|
| Individual practice | Tax audit above Rs 50 lakh receipts |
| Partnership clinic | Tax audit above the limits |
| Clinic LLP | LLP audit above Rs 40 lakh turnover or Rs 25 lakh contribution; tax audit if applicable |
| Clinic company | Statutory audit every year |
Free printable list: audit documents checklist format.
Fill the form or WhatsApp us with your entity type and last year's turnover
Day 1The CA reviews your trial balance, confirms the audit scope and quotes a fixed fee in writing
Within 2 working daysTesting, queries and adjustments on your records, with a clear list of open points
Timeline agreed in writingThe CA signs the report, generates the UDIN and supports the follow-on filings
On the agreed dateThe ICAI does not prescribe audit fees, so we do not publish a list price that would not fit your case. We scope your books for free and quote one fixed fee in writing, and you pay only after you accept it.
| Factor | Why it matters | Effect on fee |
|---|---|---|
| Turnover and transaction volume | More entries to test | Higher with more entries |
| Locations or branches | More places to verify | Higher with each location |
| State of the books | Unreconciled books need cleaning first | Lower with clean books |
| Reporting needed | CARO, internal financial controls, consolidation | Higher with more reports |
| Timeline | Short notice means overtime | Higher if rushed |
| Line | How it is shown |
|---|---|
| Our professional fee | Fixed amount in writing after scoping |
| GST at 18% | Shown on its own line |
| Government or statutory fees (for example MCA filing fees) | At actuals, shown separately |
| Total payable | Stated before you commit |
Read the full explanation in our guide: audit fees in India.
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Fellow Chartered Accountant (FCA) with over 12 years of experience across Big 4 audit, investment banking and independent practice. Personally reviews each engagement before sign-off, and signs audit reports in her capacity as a practising CA. Full profile: CA Rinky Vishwakarma.
in View LinkedIn profileYes. Gross receipts include amounts before TDS, so the limit is tested on the full amount. We reconcile your receipts with Form 26AS or AIS.
The presumptive scheme reduces book-keeping, but you must be able to show your receipts. If you declare lower profit than the prescribed rate, books and an audit may be required.
Yes. A company must be audited every year, whatever its receipts.
The main driver is how complete and reconciled your books are when we start. Clean books with bank reconciliations done move quickly, while backlog, missing vouchers or unreconciled GST and TDS add time. After reviewing your trial balance and documents, we give you a timeline in writing before you commit.
The ICAI does not prescribe audit fees. The fee depends on turnover, transaction volume, number of locations or branches, state of the books, and the reporting needed, such as CARO or internal financial controls. We scope your case for free and share a written estimate. You pay only after you accept it.
Every audit, attest and assurance report signed by a practising CA must carry an 18-digit UDIN generated through ICAI. You can check it at udin.icai.org. For tax audit reports, the UDIN is also quoted on the Income Tax e-filing portal when the report is uploaded.
Yes. Documents are shared online and review calls run on phone or video, so most audits can be run remotely. Work that needs physical presence, such as stock verification or branch visits, is planned around the location. Our office is at Topiwala Centre, Goregaon West, Mumbai.
A statutory audit is required by the Companies Act (or the LLP Act) and ends with an opinion on whether the financial statements give a true and fair view. A tax audit under section 44AB of the Income-tax Act checks your books against tax law and is reported in Form 3CA/3CB with Form 3CD. An internal audit is a review of controls and processes during the year, and it is mandatory only for the classes of companies listed in Rule 13 of the Companies (Accounts) Rules, 2014.
Free scoping call · Fixed fee in writing · Signed by a practising CA
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