Tax Audit.
Audit under section 44AB of the Income-tax Act, 1961 — preparation and filing of Forms 3CA / 3CB and 3CD.
About this service.
Businesses with turnover exceeding the prescribed threshold (₹1 crore, or ₹10 crore for entities with ≥95% digital transactions) and professionals with gross receipts exceeding ₹50 lakh.
Tax audit is a specific audit prescribed under section 44AB of the Income-tax Act, 1961, requiring the auditor to verify the correctness of the income computation and the disclosures relevant to the assessment.
The audit results in the issuance of an audit report (Form 3CA or 3CB depending on the entity) and a statement of particulars in Form 3CD covering key tax positions, disallowances and disclosures.
Reporting is governed by ICAI's Guidance Note on Tax Audit, which is updated periodically to reflect statutory amendments.
What the engagement covers.
Verification of books of account and supporting records
Reporting under all applicable clauses of Form 3CD
Tax position documentation including deductions, exemptions and disallowances
TDS and TCS compliance review
MAT and AMT computation review
Identification of tax exposures for management attention
Applicable laws and standards.
What you receive.
- Tax audit report — Form 3CA / 3CB
- Statement of particulars — Form 3CD
- Tax computation and reconciliation
- Memo on observations and recommendations
Other audit & assurance services.
Top questions.
The questions clients most often ask about this service. For anything specific to your situation, write to the firm.
An audit under section 44AB of the Income-tax Act, 1961 of the accounts of specified taxpayers, resulting in a report and a statement of particulars.
Businesses above the turnover threshold (₹1 crore, or ₹10 crore where digital transactions are ≥95%) and professionals with gross receipts above ₹50 lakh.
Form 3CA or 3CB (the audit report) and Form 3CD (the statement of particulars).
The tax-audit report is filed by the prescribed due date, ahead of the income-tax return.
Particulars on deductions, disallowances, TDS/TCS, MAT/AMT and other tax-relevant disclosures.
No. Tax audit is under the Income-tax Act; statutory audit is under the Companies Act.
Yes, in certain cases — for example, where presumptive-taxation conditions are not met.
Yes. TDS and TCS compliance is verified as part of the audit.
The ICAI Guidance Note on Tax Audit, updated for statutory amendments each year.
Yes, subject to independence requirements and the ceiling limits prescribed by the ICAI.
Looking for tax audit support?
Write to the firm to discuss the engagement. Each engagement is scoped through a formal letter, preceded by independence and conflict-of-interest checks.