What Is a Tax Audit?
A tax audit is a check of your books of accounts by a Chartered Accountant under Section 44AB of the Income Tax Act, 1961. The CA verifies that your income, deductions and compliance are reported correctly. The audit report is then filed along with your income tax return. It is different from a GST audit or a company’s statutory audit, and a business may need more than one.
Who Needs an Income Tax Audit in Bhubaneswar?
Income tax audit in Bhubaneswar is mandatory if any of these apply:
- Business turnover is above ₹1 crore in a financial year
- Business turnover is above ₹10 crore, but only if cash receipts and cash payments are each within 5% of the total
- Professional gross receipts are above ₹50 lakh
- You use presumptive taxation (Section 44AD, 44ADA or 44AE), declare profit below the prescribed rate, and your income is above the basic exemption limit
- You opted out of Section 44AD within its 5-year period and your income is above the exemption limit
- You are a cooperative society with income above the basic exemption limit
Tax Audit Under Section 44AB in Bhubaneswar: Quick Guide
| You are | Audit needed when |
|---|---|
| Business | Turnover above ₹1 crore (₹10 crore if cash stays within 5%) |
| Professional | Gross receipts above ₹50 lakh |
| On presumptive scheme | Profit declared below the prescribed rate and income above exemption limit |
Tax Audit for Business in Bhubaneswar
Do you run a shop, trading firm, small factory or service business? Tax audit for business in Bhubaneswar depends on how much you sell in a year and how much of your money moves in cash.
If your yearly sales are above ₹1 crore, you need a tax audit.
If your sales are above ₹10 crore, you still avoid the audit only when your cash receipts and cash payments are each 5% or less of the total.
Not sure where you stand? A CA checks your numbers and tells you clearly whether the audit applies to you.
Tax Audit for Professionals in Bhubaneswar
Are you a doctor, lawyer, architect, consultant or other professional? Tax audit for professionals in Bhubaneswar is needed when the money you receive in a year (gross receipts) is above ₹50 lakh.
This limit stays ₹50 lakh whether clients pay you by UPI, bank transfer or cash. Digital payments do not raise it.
Form 3CD Tax Audit Report in Bhubaneswar
The Form 3CD tax audit report in Bhubaneswar is the main report your CA prepares. It is a detailed checklist of 40+ points about your accounts, such as your income, expenses claimed, tax deducted (TDS) and GST figures.
Your CA files it together with one more form:
Form 3CA + 3CD: if your accounts are already audited under another law (for example, a company)
Form 3CB + 3CD: if the tax audit is your only audit
Documents Needed for Tax Audit
Keep these ready for your CA:
Profit & loss statement and balance sheet (a draft is fine)
Books of accounts and bank statements for the year
GST returns (GSTR-1, GSTR-3B, GSTR-9)
Details of fixed assets (machines, vehicles, furniture)
TDS returns and your tax statement (Form 26AS/AIS)
Details of loans, cash transactions and deals with related persons
Last year’s tax audit report, your PAN and last year’s ITR
Missing something? Your CA will tell you what to arrange.
Tax Audit Process: Step by Step
Check:
Your CA confirms whether a tax audit is required for you.
Match:
Your sales and expenses are matched across your books, GST returns and tax records.
Review:
The CA checks tax-related items like TDS and expenses that are not allowed.
Report:
The audit report and Form 3CD are prepared.
Approve:
You read the findings and say OK.
File:
The CA signs and uploads the report on the income tax portal.
Done:
You get an acknowledgment, and your audited ITR is filed on time.
Penalty for Not Getting a Tax Audit Done (Section 271B)
If you need an audit but skip it, or file the report late, you may pay the lower of these two amounts:
0.5% of your total sales or receipts, or
₹1,50,000
The only way out is to show a genuine reason for the delay, and the tax officer decides that case by case. So it is safer to file on time than to depend on a waiver.
Tax Audit vs GST Audit vs Statutory Audit
These three are different audits, and people often mix them up.
| Audit | What it checks | Who needs it |
|---|---|---|
| Tax audit | Income tax records | Businesses and professionals above the limits |
| GST Audit | GST records (GSTR-9C above ₹5 crore) | GST-registered businesses above the limit |
| Statutory audit | Company’s financial accounts | Companies and LLPs, whatever their size |
Tax Audit Fees in Bhubaneswar
The government charges no fee to file a tax audit. Tax audit fees in Bhubaneswar are what a CA charges for the work. The fee depends on:
How big your business is and how many transactions you have
How neat your books are
Whether you are a business or a professional
How much GST and TDS checking is needed
Tell us about your business and we will share a clear quote before you start.
Frequently Asked Questions
What is a tax audit under Section 44AB?
A CA’s audit of your books to verify income tax compliance, once turnover or receipts cross set limits.
What is the tax audit limit for businesses?
₹1 crore, or ₹10 crore if cash receipts and payments stay within 5% of total.
What is the difference between Form 3CA and 3CB?
3CA is used when accounts are audited under another law. 3CB is used when only Section 44AB applies. Both go with Form 3CD.
What is the Form 3CD tax audit report?
A detailed statement of 40+ clauses that the CA certifies along with the audit report.
What are tax audit fees in Bhubaneswar?
There is no government fee. You pay professional fees, based on turnover and complexity.
What are CA charges for tax audit?
They depend on transactions, turnover and the state of your books. Share details to get a quote.
Can I pass the ₹3 crore presumptive limit but still need an audit?
Yes. The presumptive limit tests cash receipts only, but the audit limit also checks cash payments.
Does a company need a tax audit?
A company needs a statutory audit regardless of turnover, but a Section 44AB tax audit applies separately based on turnover limits.