Question 1

When is tax audit mandatory under Section 44AB?

Accepted Answer

Tax audit is mandatory when business turnover exceeds ₹1 crore or professional receipts exceed ₹50 lakhs in a financial year. The audit report must be filed by October 31st along with the income tax return.

Question 2

What is the penalty for not getting tax audit done?

Accepted Answer

Penalty for not getting tax audit done is ₹1,50,000. Additionally, the assessing officer may reject books of accounts and estimate income, leading to higher tax liability and interest charges.

Question 3

What documents are required for tax audit?

Accepted Answer

Books of accounts, vouchers, bank statements, purchase and sales records, stock registers, fixed asset registers, loan documents, and all supporting documents for transactions during the financial year.

Question 4

How long does tax audit take to complete?

Accepted Answer

Tax audit typically takes 4-6 weeks depending on business complexity and record maintenance. We start early to ensure completion well before the October 31st deadline.

Question 5

What is Form 3CD and what does it contain?

Accepted Answer

Form 3CD is the prescribed audit report format containing details of business operations, income computation, deductions claimed, and auditor's observations on compliance with tax provisions.

Question 6

Can tax audit be done by any CA?

Accepted Answer

Tax audit must be conducted by a qualified Chartered Accountant who is not the regular accountant of the business. Our team includes experienced CAs specializing in tax audits with proven track record.

Tax Audit Services in Bangalore (Section 44AB)

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