What is the penalty for not getting a tax audit done?
Section 271B imposes a penalty of 0.5% of turnover or receipts, capped at ₹1.5 lakh, unless there is a reasonable cause. Delay can also affect deductions. We plan the audit months ahead.
Does a tax audit mean the department is suspicious?
No. A tax audit is a compliance requirement that the law imposes on certain taxpayers, not a department audit. It does not mean your return will be scrutinised. A properly audited return, in fact, often reduces risk.
Can the same CA do the books and the audit?
ICAI rules require independence in an audit. A CA doing the audit should not be maintaining the books for the same client, and we separate the two roles. We will tell you how to arrange this.
What is the cash receipt limit and how is it computed?
Cash receipts and cash payments must each be at most 5% of total receipts and payments for the ₹10 crore limit to apply. Payments exclude those through bank channels. We test it from the bank statements.
Do I need a separate audit under the Companies Act or GST?
A statutory audit under the Companies Act or LLP Act is a separate requirement. GST annual return reconciliation (GSTR-9C) is separate, and self-certified. The tax audit is the 44AB report; each has its own due date.
What if the books are not complete?
An audit needs books and vouchers. If books are incomplete, we help you write up the books first, because the report would otherwise have qualifications. The CA states observations in the report if needed. It takes more time.
Who must get a tax audit done under section 44AB?
Businesses with turnover above ₹1 crore (₹10 crore if cash receipts and payments are each 5% or less of the total) and professionals with gross receipts above ₹50 lakh need an audit. Taxpayers who opt out of presumptive taxation and earn below the basic limit, and some others, also fall in. We check every trigger before the year ends.
What is the due date for the tax audit report?
The audit report in Form 3CA/3CB-3CD is generally due by 30 September after the financial year, and the income tax return of an audit case is due by 31 October. Missing the audit date can attract a penalty under section 271B of 0.5% of turnover, capped at ₹1.5 lakh.
Is a UDIN required on a tax audit report?
Yes. Every tax audit report signed by a practising Chartered Accountant must carry a UDIN (Unique Document Identification Number) generated on the ICAI portal, and the UDIN is quoted when the report is uploaded. The report is signed by the practising CA, not by the platform or office staff that collects the documents.
