Tax Audit in
Hapur

IMAK Advisory is an ICAI-registered firm of chartered accountants in Whitefield, Bengaluru, working with proprietors, professionals, partnership firms, LLPs and companies across India on income-tax audits, books of account and the returns that follow. The tax audit requirement applies when business turnover exceeds ₹1 crore – or ₹10 crore when cash receipts and payments are each within 5% – when professional receipts exceed ₹50 lakh, or when a presumptive taxpayer declares lower profit with income above the exemption limit.

There is no separate tax audit limit for individuals: a proprietor, a freelancer or an F&O trader is tested against the same limits as a firm, using only business or professional turnover. Salary, interest, rent and capital gains are ignored for this purpose. A salaried person who also trades or runs a side business should look at the business turnover alone, along with any presumptive scheme used in earlier years.

Tax auditor eligibility is equally clear. Only a chartered accountant in practice who is independent of the business can sign, quoting a UDIN, and ICAI caps the number of reports each partner may sign in a year. A chartered accountant who writes your books or works as your internal auditor should not also be the one who certifies them.

Tax audit u/s 44AB continues for FY 2025-26 accounts under Section 44AB, reported in Form 3CA or 3CB with Form 3CD. From tax year 2026-27 the requirement moves to Section 63 of the Income-tax Act, 2025, and a single Form 26 replaces the three forms. For AY 2026-27, the report was due by 21 October 2026 after extension, and returns for audit cases are due by 21 November 2026.

For earlier years, the limits did not change. The income tax audit limit for AY 2023-24 for businesses was ₹1 crore, or ₹10 crore with cash within 5%, and ₹50 lakh for professions. Tax audit applicability for AY 2023-24 also depended on the presumptive profit declared, with Section 44AD available up to ₹2 crore of turnover in that year.

The tax audit due date for FY 2022-23 was 30 September 2023, with returns due on 31 October 2023. The tax audit limit for AY 2022-23 was the same as the following year, and the report was due on 7 October 2022 after extension.

For the tax audit limit for AY 2021-22 due date question, the limit was again ₹1 crore, or ₹10 crore with cash within 5%, and the report was finally due on 15 February 2022 after several extensions during the pandemic and the move to the new e-filing portal.

Whatever the year, the numbers in a report go well beyond profit. Depreciation, disallowed expenses, payments to relatives and associated concerns, loans taken or repaid in cash, deductions at source that were missed or paid late, and turnover reported for indirect taxes all have their own clauses. Each of these is cheaper to correct before signing than to explain during an assessment.

That is why we prefer to start in July or August. Starting early leaves room to reconcile the books, correct deductions at source, review cash payments and agree any adjustments before the report is uploaded, instead of filing whatever is ready in the last week before the due date.

Presumptive schemes deserve the same care. Declaring a lower profit for one year can bring audits and full books for the following five years, so the effect on later years should be worked out before the return for the current year is filed.

Our work does not stop at the report. We prepare the return from the audited figures, check that every adjustment shown in the report is reflected in the computation of income, and help you respond if the department later asks for an explanation of any clause. Keeping the report, the books and the return consistent with each other is the simplest way to avoid questions later. We also keep a short note of the key judgements made each year, so that the next year starts from a clear record.

We do not publish fees; our team shares the exact total after reviewing your turnover and books. Visit us at ITPL Main Rd, Pattandur Agrahara, Whitefield, Bengaluru, Karnataka 560066, call or WhatsApp +91 79798 50684, or email imakadvisoryteam@gmail.com, and the IMAK Advisory team will confirm whether an audit applies to you and which form and dates fit your year.