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Tax audit is an independent review of books of accounts of an entity by auditors required under the Income Tax Act, 1961.

Tax auditing and filing tax return on time with transparency and clear records is an important task for any assessee which is subjected to audit. To achieve this, one needs an independent tax auditor to carry out the task. SMC is your best option and trusted confidante when it comes to tax auditing as our team of experienced and dedicated auditors will provide value-added services to your accounts. We truly understand the sensitivity and importance of tax for the companies and other assessees, and we make sure we keep top-level of ethical standards and top-notch quality in our services. Our team of auditors at SMC is in this profession for decades, and they have undertaken tax audits for several companies, whether small, medium, or large.


Section 44AB of the Income Tax Act 1961 requires that if the annual gross turnover or receipt of the company exceeds a specified limit, then it must get its accounts audited by a chartered accountant. The chartered accountant provides his findings and observations in his tax audit report in Form numbers 3CA/3CB and 3CD.


A taxpayer, whether in business or professional has to get a tax audit done if his turnover/receipts exceed tax audit limits as defined below:


If the annual gross turnover/receipts in business exceed Rs. 1 Crore, then tax audit is applicable.
For taxpayers who have opted for presumptive taxation under Section 44AD, the tax audit limit is Rs. 2 Crore
For taxpayers, whose aggregate of all the receipts & payments in cash during the previous year does not exceed 5% of total receipts & payments, the tax audit limit is Rs 5 crore from the financial year 2019-20.


Our GST Auditors verify the GST registration certificate, classification of supplies and services under GST, reverse charge, purchase register, sales register, stock register, expense ledgers, monthly and quarterly returns, and other records maintained by the company as per the requirements of the law.

Tax Audit Due Date

The assessee is required to file a tax audit report by 30th September of the assessment year.

Tax Audit Penalty

As per Section 271B of the Income Tax Act 1961, the penalty for non-filing of the audit report is lower of :

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