Tax Audit Services in Ghaziabad

What is a Tax Audit?

A tax audit is an examination of the books of accounts of a business or profession by a practising Chartered Accountant, who then reports specified information to the Income Tax Department in the prescribed audit report. The aim is to ensure that books are properly maintained and that income, expenses and tax compliance are correctly reflected.

Under the Income-tax Act, 1961, tax audit provisions were in Section 44AB. Under the Income-tax Act, 2025, which applies from tax year 2026-27, the corresponding provision is renumbered. The broad thresholds discussed below are similar.

Who Needs a Tax Audit?

Businesses

• Turnover above ₹1 crore in the year
• The limit is ₹10 crore if cash receipts and cash payments are each not more than 5% of total receipts and payments

Professionals

• Gross receipts above ₹50 lakh, with a higher limit for those eligible under the presumptive scheme where cash receipts are within 5%

Presumptive taxation cases

• Businesses or professionals who declare profits lower than the presumptive rate and whose income exceeds the basic exemption limit may need an audit, subject to conditions
• Businesses that opt out of presumptive taxation may be restricted from opting back in for some years

Applicability depends on precise facts, so we recommend a check before the year end.

Process We Follow

1. Review applicability and agree the scope
2. Obtain books of accounts, ledgers, bank statements and fixed asset records
3. Verify income, expenses, depreciation, loans, TDS compliance and GST reconciliation
4. Check compliance points that the audit report covers, such as cash payments, loans and deposits in cash, related-party payments and payments to MSMEs
5. Discuss observations with you and finalise accounts
6. Upload the audit report, which you then accept on the portal, and file the ITR

Documents Required

• Books of accounts (Tally or other software data)
• Bank statements for all accounts
• Purchase and sales invoices
• GST returns and GSTR-2B
• TDS returns and challans
• Loan statements and confirmations
• Fixed asset purchase and sale details
• Previous year's audit report and ITR

Due Dates

The tax audit report is generally due by 30 September following the end of the year, and the ITR for audit cases by 31 October, unless extended. Late or non-filing of the audit report can attract penalties.

Common Mistakes to Avoid

• Starting the audit in September with incomplete books
• Not reconciling GST turnover with the books
• Cash payments or cash loans above permitted limits, which create disallowances or penalties
• Delayed payments to MSME suppliers, which can lead to disallowance of the expense
• Not deducting TDS where required, leading to disallowance

Frequently Asked Questions

Does a tax audit apply if my business made a loss?

It depends on turnover and whether presumptive taxation was used. A loss does not by itself remove the requirement.

Is GST turnover the same as turnover for tax audit?

Not always. Treatment of GST, returns and certain receipts needs care. We reconcile both.

Related Services

• Income Tax Return Filing
• GST Return Filing
• TDS Return Filing
• Company Annual Filing

This page gives general information for guidance only. Laws, forms, fees and timelines change from time to time and depend on individual facts, so please confirm the current position before acting. See all our service guides.

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