Structured Tax Audits, Standards-Based
At Lekshmi N Iyer & Associates, we assist businesses and professionals in fulfilling their obligations under Section 44AB of the Income Tax Act, 1961.
Our tax audit process is guided by applicable legislation, Income Tax Rules, and ICAI’s Guidance Note on Tax Audit. The objective is to report the particulars required in Form 3CA/3CB/3CEA and 3CD accurately and within prescribed timelines.
What Our Tax Audit Covers
Scope of Review Under Section 44AB
- Turnover Verification & Preliminary Checks
Review of total sales, receipts, books of accounts maintained, and accounting method followed. - Form 3CA/3CB and 3CD Preparation
Reporting of all prescribed particulars under the applicable forms, including quantitative details, disallowances, and statutory compliances. - Section 40 & 43B Compliance Checks
Verification of expenses and statutory dues for disallowances, TDS compliance, and employee-related provisions. - GST & TDS Reconciliation
Reconciliation of direct and indirect tax data for consistency with external filings. - Final Filing & Report Submission
Upload of the audit report on the Income Tax e-filing portal, along with clarification handling, if required.
May include review of CARO applicability, partner remuneration, depreciation schedules, and other regulations where relevant.
- Turnover Verification & Preliminary Checks
Why Timely and Accurate Tax Audit Matters
Failure to complete a tax audit within the prescribed deadline may attract penalties under Section 271B, increased scrutiny, or disallowance of expenses.
A well-documented tax audit helps entities comply with tax laws, reduce reporting inconsistencies, and align disclosures with other regulatory frameworks like TDS, GST, and Companies Act.
Methodical Approach. Standard-Aligned. Deadline-Oriented.
- Applicability Review
Assess whether tax audit is applicable based on business turnover, professional receipts, or presumptive income provisions. - Documentation & Ledger Analysis
Review trial balance, ledgers, loan statements, sales registers, and major expense heads. - Compliance Testing
Examine TDS payment status, GST reconciliation, Section 40/43B applicability, and ICDS impact. - Form Preparation
Draft Form 3CA/3CB and Form 3CD with reconciled financial data and statutory disclosures.
E-Filing & Clarification Support
Upload report with digital signature and assist in responding to any queries from the Income Tax Department.- Applicability Review
Why Timely Tax Audit Matters
Avoid Penalties
Late filing may attract penalties up to ₹1.5 lakh under Section 271B.
Improve Reporting Confidence
Tax audit reports play a critical role in due diligence during funding or credit assessment.
Prevent Disallowances
Identifying incorrect or ineligible expenses in time may help reduce disallowed deductions.
Ensure Cross-Regulatory Alignment
Reconciliations help ensure consistency between TDS, GST, and income tax filings.
Tax Audit FAQs
Common questions about income tax, compliance, and litigation support in India.
When is tax audit required?
Tax audit is applicable when turnover or gross receipts exceed thresholds prescribed under Section 44AB of the Income Tax Act.
What’s the penalty for late tax audit filing?
A penalty of up to ₹1.5 lakh may be levied under Section 271B for failure to file the audit report on time.
Do I need both tax audit and statutory audit?
If your entity is subject to both the Companies Act and Section 44AB, you may need both. In many cases, the same auditor performs both, subject to compliance with ethical guidelines.
Is TDS reconciliation part of the audit?
Yes. TDS reporting and reconciliations are reviewed to verify compliance with disallowance provisions and tax deduction obligations.
