Tax Audit Under Income Tax

  • Tax Audit if Turnover >Rs. 100 Lac(Business)
  • Tax Audit if Turnover >Rs. 50 Lac(Professional)
  • Non Filling Penalty upto Rs. 1.50 lac
  • Due Date 30 September 2020
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Tax Audit

Tax Audit is detail verification of books of accounts maintained by business & verify the accurateness of the income earned & deduction claimed by the assessee in the Income tax returns. Tax audit for FY 2019-20(i.e AY 20-21) shall be governed by the provisions ( Section 44AB ) & Rules laid down in the Income Tax Act 1961. This audit is conducted by Chartered Accountant Firm ensuring correct books of accounts maintained, legal provision complied & correct payment of Income Tax.

Tax Audit is independent verification of the books of accounts. During the audit Chartered Accountant (CA Firm) examines transactions of income , expenses , deductions etc. Tax audit due date for FY 2019-20 as per section 44AB of Income Tax Act 1961 is 30 September 2020. For Non filing of audit within due date penalty upto Rs. 150000 is applicable. VALS & Co. is trusted Chartered Accountant Firm for your Tax audit requirement in Gurgaon , Delhi etc.


Objective of Tax Audit

  • Ensuring that books of accounts are in line with tax laws and accounting policies
  • Reporting under Form 3 CA / 3 CB / 3 CD
  • Ensuring that books of accounts shows correct income tax payer
  • Preparation of reports in standard way for tax authorities

Applicability of Tax Audit

  • An individual who in engaged in business turnover > Rs. 100 Lac
  • An individual who in engaged in profession turnover > Rs. 50 Lac
  • An individual who qualifies for the presumptive taxation claims profit lower than limit

Turnover or Gross Receipt Limit For Tax Audit For 2019-20 ( A Y 2020-21)

S.No Type of Taxpayer Turnover Tax Audit Form
1. Company 1 Crore 3CA and 3CD
2. LLP - Business Income 1 Crore 3CA and 3CD
3. LLP - Income From Profession 50 Lac 3CA and 3CD
4. Partnership - Business Income 1 Crore 3CA and 3CD
5. Partnership - Income From Profession 50 Lac 3CA and 3CD

Due Date of Tax Audit

Due date for tax audit for assesse for FY 2019-20 ( AY 2020-21 ) is 30 September 2020. If assesse who's turnover/gross receipts crosses specified limit of section 44AB of Income Tax Act 1961, need to get books of account audited with in due date.

Tax Audit Penalty

Any taxpayer where tax audit is applicable & fails in tax audit filing in due date invites penalty under section 271B of Income Tax Act 1961. Penalty for non filing of tax audit shall be as below , penalty may be levied i.e lower of

  • 0.5% of the total sales, turnover or gross receipts
  • Rs 1,50,000

Tax Audit Report Format

Form 3CA

Form 3CA is part of tax audit report contain information of Name, Address & PAN. Name of auditor , Law under which accounts have been audited. Date of audit report , Period of Profit & Loss Account/ Income & Expenditure Account.

Form 3CB

In compliance with the rules set by the Income Tax Department of India, Form 3CB is part of an audit report. Date of balance sheet , Period of Profit & Loss Account/ Income & Expenditure Account, Address, where the books of accounts are kept.

Form 3CD

Form 3CD is part of Audit Reports in India, Form 3CD includes 32 Clauses and is an integral aspect of filing Income Tax returns in India. . A detailed explanation of each point of Form 3CD is important in audit.

Difference between Tax Audit & Statutory Audit

Tax Audit & statutory audit is governed by different law. For Companies under the companies act 2013 the audit is applicable irrespective of turnover of Company. Even in case of loss statutory audit is applicable. Statutory auditor required to do detail verification of books of account of company and express written true or fair view opinion. In case of LLP where turnover exceed Rs. 40 lac or contribution exceeds Rs. 25 Lakhs then it need to appoint CA firm for LLP audit. Tax audit is governed by Income Tax Act 1961 it have different objective , scope of work , applicability , due date & audit format. Auditor need to prepare audit report in specified format, ie. 3CA/ 3CB and 3CD about findings during the audit & trace for any revenue loss if any. Its like a health checkup of assesse by CA firm on behalf of Income Tax department. Scope of Tax audit is more related to compliance with income tax Act.

What We Offer

Personal Consulting

From 3 CD

From 3 CB

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Tax Filing Due Date for FY 2019-20

Mandatory For
Due Date
Statutory Compliance
Mode of Audit Submission
Who can do Audit
Audit Section

Tax Audit

30 Sept.2020

GST Audit

30 June2020

Statutory Audit

For Companies
30 Sept.2020
Section 133

Trust Audit

For Trust
31 July 2020
Online & Offline
Section11 & 12

Society Audit

For Society
31 July 2020
Online & Offline
CA & Other
Section 81

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