Assurance · Income Tax Act 1961
Tax Audit
Section 44AB India.
Section 44AB tax audit, Form 3CD preparation, transfer pricing documentation (Form 3CEB), and TDS/TCS compliance review — by ICAI-registered Chartered Accountants across India.
44AB
Section Expertise
3CD
Form Prepared
3CEB
Transfer Pricing
Oct 31
Filing Deadline
What We Cover
Tax Audit Scope India.
Form 3CD — All 44 Clauses
Complete preparation and filing of Form 3CD covering all 44 clauses — ICDS adjustments, MAT computation, deemed income disclosures, TDS defaults, and cash transaction limits. Filed on the IT e-filing portal before October 31.
Transfer Pricing — Form 3CEB
Preparation of Form 3CEB, benchmarking study, TP documentation under Section 92D, Master File and Country-by-Country Report (CbCR) for Indian entities in MNC groups. OECD BEPS-aligned approach.
TDS / TCS Compliance Review
Pre-audit review of TDS deductions (Sections 194A–194S), TCS collection, 26AS reconciliation, and Form 16/16A issuance — identifying shortfalls before the tax audit report is filed.
GAAR & Deemed Dividend
Assessment of General Anti-Avoidance Rule (GAAR) applicability, deemed dividend provisions under Section 2(22)(e), and Section 56(2) valuations for related-party transactions.
Applicability
Who Needs a Tax Audit in India.
Business — Sec 44AB(a)
₹1 Cr+
Gross turnover from business exceeds ₹1 crore (₹10 crore if 95% of receipts and payments are digital — cash limit exemption).
Profession — Sec 44AB(b)
₹50 Lakh+
Gross receipts from profession exceed ₹50 lakh in the financial year. Applicable to CAs, doctors, lawyers, and other specified professionals.
Presumptive Schemes
Opt-out
Taxpayers under Section 44AD/44ADA who claim income lower than the presumptive rate are mandatorily required to get a tax audit under Section 44AB.
Common Questions
Tax Audit FAQ.
Under Section 271B, the penalty for non-compliance with Section 44AB is 0.5% of gross turnover or gross receipts, subject to a maximum of ₹1.5 lakh. The deadline is October 31 for most taxpayers. Reasonable cause (natural calamity, illness, etc.) can be grounds for waiver if documented and submitted to the Assessing Officer.
Yes. The same ICAI-registered Chartered Accountant can conduct both the statutory audit under Companies Act 2013 and the tax audit under Section 44AB. This is the preferred arrangement for most companies as it reduces information duplication, improves audit efficiency, and ensures consistency between the audited financial statements and Form 3CD disclosures. DeccanBridge handles both in a single integrated engagement for most clients.
Yes, if the Indian entity has international transactions with associated enterprises exceeding ₹1 crore in aggregate, or specified domestic transactions exceeding ₹20 crore. A Chartered Accountant's report in Form 3CEB must be filed by October 31, and contemporaneous TP documentation under Section 92D must be maintained. Master File and CbCR obligations apply to Indian entities in qualifying MNC groups.
If 95% or more of a business's total receipts and payments are made digitally (UPI, NEFT, RTGS, card, or online banking), the tax audit threshold under Section 44AB(a) is raised from ₹1 crore to ₹10 crore. This incentive was introduced to encourage digital transactions. However, the burden of proof lies with the taxpayer — detailed transaction records and bank statements must be available to support the claim.
Meet your October 31 tax audit deadline.
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