Who needs a tax audit.
| Taxpayer | Tax audit needed if |
|---|---|
| Business | Turnover above ₹1 crore in the year |
| Business with cash receipts and payments each within 5% | Turnover above ₹10 crore |
| Profession, such as consultants or doctors | Gross receipts above ₹50 lakh |
| Profession with cash receipts within 5% | Gross receipts above ₹75 lakh |
| Presumptive taxation cases | Declaring profit below the presumptive rate with income above the exemption limit |
Tax audit is required under section 63 of the Income-tax Act, 2025 (formerly section 44AB). It applies to companies, branches of foreign companies, LLPs, firms and individuals with Indian business income, including NRIs.
The new Form 26.
From tax year 2026-27, the tax audit report is filed on a single Form 26, replacing Forms 3CA and 3CB (the audit report) and 3CD (the statement of particulars). The content is broadly the same, covering:
- Accounting and stockMethod of accounting, valuation of inventory and changes in policy.
- DisallowancesExpenses not allowed, such as unpaid statutory dues or TDS defaults.
- TDS and TCS complianceDeduction, payment and filing of TDS and TCS.
- GST and turnoverTurnover reconciliation and indirect tax details.
- Related partiesPayments to related persons and international transactions.
- Loans and cashLoans and deposits taken or repaid in cash, and other cash limits.
Due dates.
| Step | Due date |
|---|---|
| Tax audit report filed | 30 September after the end of the tax year |
| Income tax return for audit cases | 31 October |
| Transfer pricing cases | Report by 31 October, return by 30 November |
A company that needs a tax audit also has its statutory audit. We plan both together so the figures agree.
Penalties for missing it.
Not getting a tax audit or filing the report attracts a penalty of 0.5% of turnover, up to ₹1.5 lakh.
A return filed without the required report can be treated as defective.
Missing disclosures in the report increase the risk of notices.
How we carry out your tax audit.
Confirm applicability
Turnover, cash ratio and type of business.
Books and records
Ledgers, GST and TDS returns, fixed assets and stock.
Test and verify
Each clause of Form 26, with schedules.
Share findings
Disallowances and corrections before the report is final.
Report and return
Report filed by 30 September and the return by 31 October.
Why clients choose us for audits.
Every audit is led and signed by Chartered Accountants in India.
Findings written for UK boards, audit committees and group auditors.
A written engagement letter with scope, timetable and fee.
Independence checks and a second-partner review on every report.
Encrypted document sharing, with site visits where the work needs them.
Clear, prioritised recommendations your team can act on.
Tax audits for UK-linked businesses in India.
We carry out audits in India for UK groups, investors and lenders headquartered anywhere in the UK, reporting in a form their UK boards and auditors can use.
London
South East
Midlands
North of England
East and South West
Scotland, Wales, NI
Tax audit FAQs.
Does your business need a tax audit this year?
Tell us your turnover and business type. We will confirm and handle it before the deadline.
This page is general guidance based on the Companies Act, 2013, Indian tax law and regulator guidelines as they stand. It is not legal or financial advice for your situation. Thresholds and requirements can change, so please speak to us before acting on it.