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CA Surya Prakash Associates offer income tax audit services in Lucknow to business concerns and other individuals who are required to undergo auditing under the relevant provisions of the Income Tax Act. The services include review of the books of accounts and the financial transactions along with the other related details such as incomes, expenditures etc. This will help us to identify any discrepancies, make necessary disclosures and fulfill the requirements of the tax audits. We will also provide assistance in the preparation and filing of the relevant tax audit reports like Form 3CA, Form 3CB and Form 3CD of the relevant assessment year.
An income tax audit refers to the examination of the books of account and financial statements of the taxpayer carried out by the chartered accountant for verification of the particulars prescribed under the Income Tax Act. The CA checks the records of the sales, purchases, expenses, assets, liabilities and other relevant financial information and then presents the necessary particulars in the tax audit form. The tax audit provisions are applicable for taxpayers falling under Section 44AB or the equivalent section as per their nature of business and profession.
A tax audit may be applicable to businesses, professionals, and other taxable entities if the criteria laid down in Section 44AB of the Income Tax Act apply to them. In case of businesses, turnover and cash transactions are the significant criteria in deciding upon the applicability of the same. Professions are normally assessed on the basis of gross receipts and the limits prescribed. Tax audits may also become applicable in some of the cases related to presumptive taxation. Proprietorships, partnership firms, companies, traders, manufacturers, service enterprises, and professionals like doctors and lawyers need to examine their individual cases.
Section 44AB of the Income Tax Act specifies the circumstances in which certain taxpayers are required to get their books of accounts audited by a chartered accountant. The requirement may depend on business turnover, professional gross receipts, cash transactions and certain conditions relating to presumptive taxation. Once the tax audit provisions become applicable, the taxpayer must obtain the audit and furnish the prescribed report within the applicable timeline. A CA can review the nature of your business or profession, financial records and tax position to determine whether a Section 44AB tax audit applies.
The tax audit limit depends on the nature of the taxpayer and the conditions prescribed under the Income Tax Act. For businesses, the general turnover threshold is ?1 crore. This limit can increase to ?10 crore where cash receipts and cash payments do not exceed the prescribed 5% limit. For professionals, the applicable gross receipts threshold is ?50 lakh. Certain presumptive taxation cases may also require an audit even when turnover or receipts are below the general threshold.
|
Category |
Turnover / Income Limit |
|
Business (cash dealings above 5%). |
Above ?1 crore. |
|
Business (digital dealings, cash below 5%). |
Above ?10 crore. |
|
Professionals. |
Above ?50 lakh gross receipts. |
|
Presumptive scheme cases. |
As per specific rule conditions. |
Forms 3CA, 3CB and 3CD are utilized for submitting information regarding tax audits to the Income Tax Department. Depending on the fact of whether there is any existing requirement of an account being audited under any other Act, the relevant form is utilized. Form 3CD comprises details of income, expenses, deductions, accounting books etc. These forms are prepared and filed by the chartered accountant through the income tax e-filing facility.
Form 3CA is typically utilized when there is an obligation under some other statute to have the accounts audited. Form 3CD comes with Form 3CA and it includes the particulars prescribed in relation to the accounts of the taxpayer. This means that where a company is obliged to have its accounts statutorily audited, it will also need to have a tax audit done on its accounts.
A 3CB form is used in those cases where there is an obligation on the part of the taxpayer for a tax audit but there is no legal obligation to have accounts audited. The 3CD form is filled along with the 3CB and contains all information necessary for carrying out the tax audit. This information is reviewed by the CA and the consistency of the data is verified.
Forms 3CA, 3CB, and 3CD will continue to be applicable for the financial year 2025-26 and assessment year 2026-27, respectively. With the new tax structure from 2026-27 onwards, there will be a change in the form applicable for the tax audit. It is Form 26, which replaces the previous forms.
The necessary documents for a tax audit will depend on the kind of business or profession being carried out. It is helpful for the chartered accountant when all records are available so that any inconsistencies can be sorted out prior to filing the final report.
Commonly required documents may include:
The CA may request additional documents depending on the taxpayer’s business activity and audit requirements.
The income tax audit process involves reviewing financial records, checking compliance requirements and preparing the applicable audit report. CA Surya Prakash Associates follows a structured process to help businesses and professionals complete their tax audit requirements accurately.
The time limit within which a tax audit report should be filed would depend on the applicable assessment year and the nature of the case involved. In respect of the financial year ending 31 March 2025 for the assessment year 2026-2027, a tax audit report for cases falling under the usual schedule would need to be filed by 30 September 2026. Cases where transfer pricing provisions are applicable may have a different due date. This is because the government might revise the time limit.
A penalty will be payable when the requirement to get a tax audit is not fulfilled. Section 271B provides that the penalty would normally be a sum equal to 0.5% of the aggregate sales, turnover or gross receipt, not exceeding the maximum amount specified by law. The taxpayer may receive relief from paying any penalties if he is able to prove that there was a reasonable cause for his failure, as provided for by law.
CA Surya Prakash Associates offers comprehensive income tax audit services in Lucknow to various clients falling under the purview of tax audits. We aim to assist our clients in maintaining proper record keeping, complying with the reporting requirements and completing the process of audit in a stipulated time period.
Our income tax audit services include:
The tax audit services that we provide can be of great help for individuals and firms who are mandated to do tax audits. This includes proprietorships, partnership firms, companies, traders, manufacturers, retailers, service providers, and other eligible businesses. Other eligible professions like doctors, lawyers, architects, consultants and others also need a tax audit if the conditions are fulfilled. Businesses that fall under presumptive taxation rules can also take professional help to conduct the audit process.
Selecting the right chartered accountant makes the entire process of tax audits more organized and easy to handle. CA Surya Prakash Associates helps their clients in reviewing documents, preparing reports on tax audits, and filing them online, bearing in mind all the compliance considerations.
Professional help will aid in better organization of the process as well as minimize any unnecessary errors in the reports. The chartered accountant analyzes the books of accounts, transactions, and documents before drafting the audit report. This will be helpful in identifying any discrepancy or incorrect information that may require rectification. Professional guidance will also be helpful in complying with the provisions of Section 44AB and filling the relevant audit forms online.
Audits can be income tax audits and statutory audits, which are distinct from each other because the reasons why they are done are legal and reporting. A company can conduct both audits, but not necessarily.
|
Point |
Income Tax Audit |
Statutory Audit |
|
Governed by |
Income Tax Act. |
Companies Act or other laws. |
|
Applies to |
Businesses above the turnover limit. |
Companies and certain entities. |
|
Purpose |
Confirms tax compliance. |
Confirms fair financial statements. |
|
Report filed as |
Form 3CA/3CB and 3CD. |
Auditor's report to shareholders. |
The taxpayer should decide on both independently since doing the statutory audit alone is not a guarantee of fulfilling all the conditions for an income tax audit.
Small slips during the audit process can lead to big problems later, so it helps to know the common mistakes businesses often make.
Common mistakes include:
The cost of income tax audit in Lucknow depends upon various factors including business turnover, volume of transactions, nature of business, state of books of accounts, and the extent of tax audit process itself. Any extra accounting or compliance work may also impact the professional charges. The services of CA Surya Prakash Associates can evaluate your needs and inform you about professional charges applicable to your case.
Income Tax Audit Services in Lucknow are offered by CA Surya Prakash Associates by our professional chartered accountants. We provide income tax audit services to businesses, professionals, and other taxpayers who need to fulfill their tax audit obligations.
We offer the services related to review of financial documents, determination of tax audit obligations, preparation of tax audit reports, and online filing of the report through the Income Tax e-Filing portal. In case you need to clarify your tax audit obligations, please contact CA Surya Prakash Associates at +91-9506666255.
An income tax audit is an examination of a taxpayer’s books of accounts and financial records by a Chartered Accountant to verify income, expenses, deductions and tax compliance as required under the Income Tax Act.
Taxpayers meeting the conditions prescribed under Section 44AB of the Income Tax Act may need a tax audit. This generally includes certain businesses and professionals whose turnover, gross receipts or specified circumstances cross applicable statutory limits.
For businesses, the general tax audit threshold is ₹1 crore. It can increase to ₹10 crore when cash receipts and cash payments are each within the prescribed 5% limit, subject to applicable Income Tax provisions.
Yes, certain professionals must obtain a tax audit when their gross receipts exceed the prescribed limit under Section 44AB. The applicable threshold and conditions depend on the professional activity and relevant provisions of the Income Tax Act.
A tax audit checks compliance with Income Tax provisions and reporting requirements, while a statutory audit examines financial statements under applicable corporate or other laws. Their objectives, reporting formats, legal requirements and applicability can therefore differ.
Form 3CA is used when a taxpayer’s accounts are already required to be audited under another law. Form 3CD contains detailed tax-related information and particulars that the Chartered Accountant reports along with the audit.
Form 3CB is generally applicable when a taxpayer’s accounts are not required to be audited under another law but tax audit is required under Section 44AB. Form 3CD provides the prescribed detailed tax audit particulars.
Form 3CA-3CD generally applies when accounts are audited under another law, while Form 3CB-3CD applies when they are not. A Chartered Accountant can review your business structure and determine the appropriate tax audit form.
Common documents include books of accounts, trial balance, profit and loss account, balance sheet, bank statements, sales and purchase records, expense details, GST records, TDS information, fixed asset details and previous tax returns.
The tax audit report is generally required to be furnished electronically by the prescribed due date under the Income Tax Act. The applicable deadline can vary by assessment year, so taxpayers should verify the current statutory due date.
Failure to obtain or furnish a required tax audit report may result in a penalty under Section 271B, subject to applicable provisions and reasonable-cause relief. Timely professional compliance helps avoid unnecessary penalties and filing complications.
Yes, a Chartered Accountant can electronically submit the income tax audit report through the Income Tax e-Filing portal after completing the required audit procedures. The taxpayer must generally complete the necessary acceptance or verification process.
An income tax audit involves reviewing books, financial statements, transactions, deductions, tax records and supporting documents. The Chartered Accountant verifies relevant information, identifies reporting requirements and submits the prescribed audit report electronically with applicable particulars.
The cost of an income tax audit in Lucknow depends on business turnover, transaction volume, accounting records, complexity, nature of business and additional compliance requirements. CA Surya Prakash Associates can assess your requirements before determining professional fees.
Choose a CA with relevant experience in income tax audits, Section 44AB compliance, financial reporting and e-filing. CA Surya Prakash Associates can help businesses review records, meet reporting requirements and complete tax audit compliance efficiently.
Very prompt and accurate financial advice. Their expertise in taxation saved me both time and money.
One of the best CA services in Lucknow. They helped me with my business registration and accounting work efficiently.
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I got my GST registration and returns done smoothly without any hassle. Very supportive and knowledgeable team.
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Excellent service for income tax filing. The team is highly professional and guided me through every step. Highly recommended CA firm in Lucknow
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