Tax Audit u/s 44AB (Form 3CA/3CB & 3CD)
Statutory Tax Audit examination and electronic audit report submission in Form 3CA / 3CB and Form 3CD with mandatory ICAI Unique Document Identification Number (UDIN) by B. Mallesh & Co., Chartered Accountants.
1. Statutory Tax Audit Thresholds (Section 44AB)
Under Section 44AB of the Income Tax Act, 1961, mandatory audit by a practicing Chartered Accountant is required if business or professional turnover crosses the following statutory thresholds:
Business Tax Audit Limits
- • General Limit: Total sales/turnover exceeds ₹1 Crore.
- • Digital Limit: Threshold extended to ₹10 Crores if aggregate cash receipts & payments ≤ 5%.
- • Presumptive Exit: Declaring profit below 6%/8% u/s 44AD with total income > basic exemption limit.
Professional Tax Audit Limits
- • General Limit: Gross professional receipts exceed ₹50 Lakhs (₹75 Lakhs for digital transactions).
- • Presumptive Exit: Claiming profit below 50% u/s 44ADA with total income > basic exemption limit.
Section 271B Penalty for Non-Compliance
Failure to get accounts audited u/s 44AB or failure to furnish the tax audit report by the due date (30th September) attracts a mandatory statutory penalty under Section 271B equal to 0.5% of total sales/turnover or ₹1,50,000, whichever is lower.
3. Mandatory Document Checklist
Required Records for Tax Audit Examination
- Audited Books of Account (General Ledger, Cash Book)
- Trial Balance, P&L Account & Balance Sheet
- TDS / TCS Return Filings & Chalan Payment Proofs
- GSTR-9 / GSTR-3B Reconciliation Statements
- Fixed Asset Register & Depreciation Schedule u/s 32
4. Step-by-Step Audit Execution Timeline
Step 1: Book Examination & 3CD Particular Verification
Verifying 44 clauses of Form 3CD including Section 40(a)(ia) TDS defaults, 40A(3) cash payments, and 43B statutory dues.
Step 2: UDIN Generation & Portal Filing
Generating ICAI UDIN, signing Form 3CA/3CB and Form 3CD, and uploading on Income Tax portal for client acceptance.
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Mancherial Office Contact
B. Mallesh & Co., Co. Laxmi Theater, Indra Nagar, Mancherial, Telangana - 504208