{"id":36544,"date":"2026-08-22T17:18:23","date_gmt":"2026-08-22T11:48:23","guid":{"rendered":"https:\/\/www.legalraasta.com\/blog\/?p=36544"},"modified":"2026-08-22T17:18:23","modified_gmt":"2026-08-22T11:48:23","slug":"tax-audit-service-for-companies-in-india","status":"publish","type":"post","link":"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/","title":{"rendered":"Tax Audit Service for Companies in India 2026: Complete Guide"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-36545 size-fusion-1200\" src=\"https:\/\/www.legalraasta.com\/blog\/wp-content\/uploads\/2026\/08\/tax-audit-service-1200x633.jpg\" alt=\"Tax Audit Service for Companies\" width=\"1200\" height=\"633\" srcset=\"https:\/\/www.legalraasta.com\/blog\/wp-content\/uploads\/2026\/08\/tax-audit-service-200x105.jpg 200w, https:\/\/www.legalraasta.com\/blog\/wp-content\/uploads\/2026\/08\/tax-audit-service-300x158.jpg 300w, https:\/\/www.legalraasta.com\/blog\/wp-content\/uploads\/2026\/08\/tax-audit-service-400x211.jpg 400w, https:\/\/www.legalraasta.com\/blog\/wp-content\/uploads\/2026\/08\/tax-audit-service-600x316.jpg 600w, https:\/\/www.legalraasta.com\/blog\/wp-content\/uploads\/2026\/08\/tax-audit-service-768x405.jpg 768w, https:\/\/www.legalraasta.com\/blog\/wp-content\/uploads\/2026\/08\/tax-audit-service-800x422.jpg 800w, https:\/\/www.legalraasta.com\/blog\/wp-content\/uploads\/2026\/08\/tax-audit-service-1024x540.jpg 1024w, https:\/\/www.legalraasta.com\/blog\/wp-content\/uploads\/2026\/08\/tax-audit-service-1200x633.jpg 1200w, https:\/\/www.legalraasta.com\/blog\/wp-content\/uploads\/2026\/08\/tax-audit-service.jpg 1280w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p><span style=\"font-weight: 400\">Every Private Limited, Public Limited, and One Person Company operating in India works under strict legal scrutiny. Beyond the annual statutory audit required by the Companies Act 2013, crossing specific sales limits makes a tax audit mandatory under the Income Tax Act 1961. Choosing a professional <\/span><b>Tax Audit Service for Companies<\/b><span style=\"font-weight: 400\"> in India helps management teams meet statutory obligations without disrupting daily business operations. Filing clean financial reports on time protects your firm from heavy administrative fines and loss of tax carry-forwards. Accelerate your growth and protect your operational future effortlessly with LegalRaasta.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Quick_Answer_At_a_Glance_for_Tax_Audit_Service_for_Companies_in_India\" title=\"Quick Answer \/ At a Glance for Tax Audit Service for Companies in India\">Quick Answer \/ At a Glance for Tax Audit Service for Companies in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Overview_of_Tax_Audit_for_Indian_Companies_in_2026\" title=\"Overview of Tax Audit for Indian Companies in 2026\">Overview of Tax Audit for Indian Companies in 2026<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Purpose_of_Tax_Audit_Under_Section_44AB\" title=\"Purpose of Tax Audit Under Section 44AB\">Purpose of Tax Audit Under Section 44AB<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Statutory_Audit_vs_Tax_Audit_Core_Differences\" title=\"Statutory Audit vs Tax Audit: Core Differences\">Statutory Audit vs Tax Audit: Core Differences<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#FY_2025-26_Compliance_Framework_AY_2026-27_Transition_Note\" title=\"FY 2025-26 Compliance Framework (AY 2026-27 Transition Note)\">FY 2025-26 Compliance Framework (AY 2026-27 Transition Note)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Mandatory_Thresholds_and_Applicability_Rules_for_FY_2025-26\" title=\"Mandatory Thresholds and Applicability Rules for FY 2025-26\">Mandatory Thresholds and Applicability Rules for FY 2025-26<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Standard_Turnover_Limit_%E2%82%B91_Crore_Rule\" title=\"Standard Turnover Limit (\u20b91 Crore Rule)\">Standard Turnover Limit (\u20b91 Crore Rule)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Digital_Business_Limit_%E2%82%B910_Crore_Threshold\" title=\"Digital Business Limit (\u20b910 Crore Threshold)\">Digital Business Limit (\u20b910 Crore Threshold)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Presumptive_Taxation_Opt-Out_Rules\" title=\"Presumptive Taxation Opt-Out Rules\">Presumptive Taxation Opt-Out Rules<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Real-World_Business_Scenarios_in_India\" title=\"Real-World Business Scenarios in India\">Real-World Business Scenarios in India<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Step-by-Step_Filing_Workflow_for_Corporate_Tax_Audit\" title=\"Step-by-Step Filing Workflow for Corporate Tax Audit\">Step-by-Step Filing Workflow for Corporate Tax Audit<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Phase_1_Ledger_Closing_and_Reconciliation\" title=\"Phase 1: Ledger Closing and Reconciliation\">Phase 1: Ledger Closing and Reconciliation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Phase_2_Independent_CA_Examination_and_Verification\" title=\"Phase 2: Independent CA Examination and Verification\">Phase 2: Independent CA Examination and Verification<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Phase_3_Digital_Portal_Upload_and_Director_Acceptance\" title=\"Phase 3: Digital Portal Upload and Director Acceptance\">Phase 3: Digital Portal Upload and Director Acceptance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Critical_Form_3CD_Clauses_Demanding_High_Compliance_Scrutiny\" title=\"Critical Form 3CD Clauses Demanding High Compliance Scrutiny\">Critical Form 3CD Clauses Demanding High Compliance Scrutiny<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Why_Corporate_Compliance_is_Complex_and_Risky\" title=\"Why Corporate Compliance is Complex and Risky\">Why Corporate Compliance is Complex and Risky<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Overlap_of_Company_Law_and_Income_Tax_Statutes\" title=\"Overlap of Company Law and Income Tax Statutes\">Overlap of Company Law and Income Tax Statutes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Dynamic_Tax_Portal_Updates_and_Reporting_Shifts\" title=\"Dynamic Tax Portal Updates and Reporting Shifts\">Dynamic Tax Portal Updates and Reporting Shifts<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Common_Filing_Mistakes_Made_by_Indian_Companies\" title=\"Common Filing Mistakes Made by Indian Companies\">Common Filing Mistakes Made by Indian Companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#What_Happens_If_You_Dont_Comply_Penalties_and_Risks\" title=\"What Happens If You Don&#8217;t Comply: Penalties and Risks\">What Happens If You Don&#8217;t Comply: Penalties and Risks<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Monetary_Fines_Under_Section_271B\" title=\"Monetary Fines Under Section 271B\">Monetary Fines Under Section 271B<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Section_234A_Interest_and_Loss_Forfeiture\" title=\"Section 234A Interest and Loss Forfeiture\">Section 234A Interest and Loss Forfeiture<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#How_LegalRaasta_Delivers_Expert_Tax_Audit_Services\" title=\"How LegalRaasta Delivers Expert Tax Audit Services\">How LegalRaasta Delivers Expert Tax Audit Services<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Structured_CA-Led_Audit_Process\" title=\"Structured CA-Led Audit Process\">Structured CA-Led Audit Process<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#1_Who_needs_a_Tax_Audit_Service_for_Companies_in_India\" title=\"1. Who needs a Tax Audit Service for Companies in India?\">1. Who needs a Tax Audit Service for Companies in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#2_What_is_the_tax_audit_due_date_for_companies_in_2026\" title=\"2. What is the tax audit due date for companies in 2026?\">2. What is the tax audit due date for companies in 2026?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#3_What_forms_are_used_for_corporate_tax_audits_in_India\" title=\"3. What forms are used for corporate tax audits in India?\">3. What forms are used for corporate tax audits in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#4_What_penalty_applies_for_missing_the_corporate_tax_audit_deadline\" title=\"4. What penalty applies for missing the corporate tax audit deadline?\">4. What penalty applies for missing the corporate tax audit deadline?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#5_What_documents_are_needed_for_a_company_tax_audit_in_India\" title=\"5. What documents are needed for a company tax audit in India?\">5. What documents are needed for a company tax audit in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#6_Can_a_company_file_its_ITR_before_completing_the_tax_audit\" title=\"6. Can a company file its ITR before completing the tax audit?\">6. Can a company file its ITR before completing the tax audit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#7_Who_conducts_a_Tax_Audit_Service_for_Companies_in_India\" title=\"7. Who conducts a Tax Audit Service for Companies in India?\">7. Who conducts a Tax Audit Service for Companies in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#8_Does_GST_reconciliation_form_part_of_the_company_tax_audit\" title=\"8. Does GST reconciliation form part of the company tax audit?\">8. Does GST reconciliation form part of the company tax audit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#9_What_is_the_turnover_threshold_for_tax_audit_if_a_company_makes_mostly_digital_payments\" title=\"9. What is the turnover threshold for tax audit if a company makes mostly digital payments?\">9. What is the turnover threshold for tax audit if a company makes mostly digital payments?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/www.legalraasta.com\/blog\/tax-audit-service-for-companies-in-india\/#10_How_does_LegalRaasta_help_with_Tax_Audit_Service_for_Companies\" title=\"10. How does LegalRaasta help with Tax Audit Service for Companies?\">10. How does LegalRaasta help with Tax Audit Service for Companies?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Quick_Answer_At_a_Glance_for_Tax_Audit_Service_for_Companies_in_India\"><\/span><b>Quick Answer \/ At a Glance for Tax Audit Service for Companies in India<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Parameter<\/b><\/p>\n<\/td>\n<td>\n<p><b>Statutory Requirement (FY 2025-26 \/ AY 2026-27)<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Governing Act &amp; Section<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Section 44AB of the Income Tax Act, 1961<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>General Turnover Threshold<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Exceeding \u20b91 Crore in a Financial Year<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Digital Turnover Threshold<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Exceeding \u20b910 Crore (where cash transactions stay \u2264 5%)<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Mandatory Audit Forms<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Form 3CA (Auditor Report) + Form 3CD (44-Clause Statement)<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Audit Filing Due Date<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">September 30, 2026<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>ITR Filing Due Date<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">October 31, 2026 (November 30, 2026 for Transfer Pricing cases)<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Non-Compliance Penalty<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Section 271B: 0.5% of turnover, capped at \u20b91,50,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Overview_of_Tax_Audit_for_Indian_Companies_in_2026\"><\/span><b>Overview of Tax Audit for Indian Companies in 2026<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">Understanding the legal framework behind corporate tax audits helps management teams meet statutory obligations without disrupting daily business.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Purpose_of_Tax_Audit_Under_Section_44AB\"><\/span><b>Purpose of Tax Audit Under Section 44AB<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">A tax audit examines a company&#8217;s financial ledgers, expense deductions, and tax calculations. Selecting a specialized <\/span><b>Tax Audit Service for Companies<\/b><span style=\"font-weight: 400\"> ensures that financial statements align perfectly with tax deduction laws and income calculations. The audit verifies that income declarations reflect true operational results. It reduces the risk of long-drawn assessment proceedings or notices from the Income Tax Department.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Statutory_Audit_vs_Tax_Audit_Core_Differences\"><\/span><b>Statutory Audit vs Tax Audit: Core Differences<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Many business owners confuse statutory audits with tax audits. A statutory audit is mandated under the Companies Act 2013 to protect shareholders and verify balance sheet accuracy. A tax audit is required under Section 44AB of the Income Tax Act, 1961, to verify taxable income and tax compliance. Companies must complete both audits every year.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"FY_2025-26_Compliance_Framework_AY_2026-27_Transition_Note\"><\/span><b>FY 2025-26 Compliance Framework (AY 2026-27 Transition Note)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">For Financial Year 2025-26 (Assessment Year 2026-27), companies must submit Form 3CA alongside Form 3CD under Section 44AB. While the consolidated <\/span><a href=\"https:\/\/www.incometaxindia.gov.in\/income-tax-act-2025\"><span style=\"font-weight: 400\">Income-tax Act 2025<\/span><\/a><span style=\"font-weight: 400\"> introduces Form 26 under Section 63, that form applies starting from Tax Year 2026-27 audits. Audits due on September 30, 2026, continue under the existing 1961 Act framework.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Mandatory_Thresholds_and_Applicability_Rules_for_FY_2025-26\"><\/span><b>Mandatory Thresholds and Applicability Rules for FY 2025-26<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">Corporate entities must evaluate their annual turnover and payment methods against statutory threshold limits to determine tax audit liability.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Standard_Turnover_Limit_%E2%82%B91_Crore_Rule\"><\/span><b>Standard Turnover Limit (\u20b91 Crore Rule)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Any company carrying on business with total sales, turnover, or gross receipts exceeding \u20b91 crore in the financial year must get its accounts audited under Section 44AB. This threshold applies regardless of net profit or loss incurred during the year.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Digital_Business_Limit_%E2%82%B910_Crore_Threshold\"><\/span><b>Digital Business Limit (\u20b910 Crore Threshold)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">An enhanced threshold of \u20b910 crore applies to businesses embracing digital payments. To qualify for this limit:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Aggregate cash receipts during the year must not exceed 5% of total receipts.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Aggregate cash payments during the year must not exceed 5% of total payments.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">All major sales, purchases, and expenses must pass through banking channels, UPI, or electronic modes.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Presumptive_Taxation_Opt-Out_Rules\"><\/span><b>Presumptive Taxation Opt-Out Rules<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Companies cannot claim presumptive taxation schemes meant for small traders under Section 44AD. Corporate entities are judged solely by turnover thresholds and statutory provisions.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Real-World_Business_Scenarios_in_India\"><\/span><b>Real-World Business Scenarios in India<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400\"><b>Scenario A (Tech Startup in Bengaluru):<\/b><span style=\"font-weight: 400\"> \u20b98 crore turnover, 100% digital collections via payment gateways, zero cash expenses. Result: Exempt from tax audit because turnover is below \u20b910 crore.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Scenario B (Manufacturing Unit in Delhi):<\/b><span style=\"font-weight: 400\"> \u20b92.5 crore turnover, \u20b920 lakh cash payments to local suppliers (8% of total payments). Result: Tax audit mandatory because cash transactions exceed 5%, bringing down the limit to \u20b91 crore.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Step-by-Step_Filing_Workflow_for_Corporate_Tax_Audit\"><\/span><b>Step-by-Step Filing Workflow for Corporate Tax Audit<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">Executing a structured audit workflow ensures complete document verification, seamless CA approval, and timely portal submission.<\/span><\/p>\n<p><span style=\"font-weight: 400\">[Phase 1: Books Finalization] \u2794 [Phase 2: CA Scrutiny &amp; Form 3CD] \u2794 [Phase 3: E-Filing Acceptance]<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Phase_1_Ledger_Closing_and_Reconciliation\"><\/span><b>Phase 1: Ledger Closing and Reconciliation<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Before starting the audit, company accountants must complete internal book-closing tasks:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Reconcile GSTR-1 and GSTR-3B sales figures with profit and loss ledgers.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Match Form 26AS, AIS, and TIS statements with interest and revenue entries.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Prepare fixed asset registers and calculate depreciation under Income Tax rules.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Gather bank statements, loan agreements, and <\/span><a href=\"https:\/\/www.legalraasta.com\/msme-registration\/\"><span style=\"font-weight: 400\">MSME<\/span><\/a><span style=\"font-weight: 400\"> vendor payment bills.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Phase_2_Independent_CA_Examination_and_Verification\"><\/span><b>Phase 2: Independent CA Examination and Verification<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Our <\/span><b>Tax Audit Service for Companies in India<\/b><span style=\"font-weight: 400\"> streamlines ledger verification, portal authentication, and auditor sign-off:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The Chartered Accountant examines books of accounts, cash books, journal vouchers, and ledger postings.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The CA reviews disallowances, TDS deductions, and related-party transactions.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Form 3CA (auditor declaration) and Form 3CD (44-clause detail report) are drafted.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Phase_3_Digital_Portal_Upload_and_Director_Acceptance\"><\/span><b>Phase 3: Digital Portal Upload and Director Acceptance<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">The audit process ends with online portal filing:<\/span><\/p>\n<ol>\n<li><b> CA Upload:<\/b><span style=\"font-weight: 400\"> The CA logs into the Income Tax portal, attaches financial statements, signs Form 3CA-3CD using a <\/span><a href=\"https:\/\/www.legalraasta.com\/digital-signature-dsc\/\"><span style=\"font-weight: 400\">Digital Signature Certificate<\/span><\/a><span style=\"font-weight: 400\"> (DSC), and submits the file.<\/span><\/li>\n<li><b> Director Approval:<\/b><span style=\"font-weight: 400\"> The company director logs into the company e-filing account under &#8220;Pending Actions&#8221;, reviews the uploaded report, and approves it using their DSC.<\/span><\/li>\n<li><b> Completion:<\/b><span style=\"font-weight: 400\"> The audit is officially filed only after director approval is completed. Average CA turnaround time is 5 to 7 working days upon receiving clean records.<\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Critical_Form_3CD_Clauses_Demanding_High_Compliance_Scrutiny\"><\/span><b>Critical Form 3CD Clauses Demanding High Compliance Scrutiny<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">Income tax authorities closely analyze specific Form 3CD disclosures to identify expense disallowances, unverified cash transactions, and statutory delays.<\/span><\/p>\n<p><span style=\"font-weight: 400\">An experienced <\/span><b>Tax Audit Service for Companies<\/b><span style=\"font-weight: 400\"> reviews every expense line to flag disallowances before submitting the final report:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Clause 43B(h) &#8211; MSME Payment Dues:<\/b><span style=\"font-weight: 400\"> Invoices from registered Micro and Small enterprises must be paid within 15 days (or 45 days if a written agreement exists). Unpaid amounts at year-end are disallowed as business deductions and added back to taxable income.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Clause 34 &#8211; TDS and TCS Deductions:<\/b><span style=\"font-weight: 400\"> Verifies whether tax was deducted correctly under sections like 194C, 194J, and 194Q. Non-deduction or late deposit triggers a 30% expense disallowance under Section 40(a)(ia).<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Clause 40A(3) &#8211; Cash Expense Restrictions:<\/b><span style=\"font-weight: 400\"> Any single-day cash payment exceeding \u20b910,000 to a person or vendor is completely disallowed as an expense deduction.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Clauses 269SS &amp; 269T &#8211; Loans and Deposits Verification:<\/b><span style=\"font-weight: 400\"> Accepting or repaying loans or deposits exceeding \u20b920,000 must occur via account-payee cheque or electronic transfer. Cash violations attract equal penalty amounts under Section 271D and 271E.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Why_Corporate_Compliance_is_Complex_and_Risky\"><\/span><b>Why Corporate Compliance is Complex and Risky<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">Managing corporate tax obligations requires balancing multiple overlapping legal frameworks while maintaining precise financial ledgers.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Overlap_of_Company_Law_and_Income_Tax_Statutes\"><\/span><b>Overlap of Company Law and Income Tax Statutes<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Companies must comply with both MCA rules and Income Tax guidelines. Schedule III accounting under the <\/span><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act,_2013\"><span style=\"font-weight: 400\">Companies Act 2013<\/span><\/a><span style=\"font-weight: 400\"> differs from tax rules regarding depreciation rates, preliminary expenses, and provision treatments. Bridging these differences without expert help risks regulatory non-compliance.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Dynamic_Tax_Portal_Updates_and_Reporting_Shifts\"><\/span><b>Dynamic Tax Portal Updates and Reporting Shifts<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">The Income Tax Department continuously integrates tax audit reports with Automated Information System (AIS) data and GST portal feeds. Discrepancies between reported turnover, TDS claims, and GST filings trigger automated system flags and verification notices.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Common_Filing_Mistakes_Made_by_Indian_Companies\"><\/span><b>Common Filing Mistakes Made by Indian Companies<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">Reviewing frequent accounting errors before submitting tax audit reports helps corporate management avoid unnecessary tax notices and penalties.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Engaging a dedicated <\/span><b>Tax Audit Service for Companies in India<\/b><span style=\"font-weight: 400\"> prevents mismatches between turnover declared in GST returns and income tax ledgers:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>GST and Income Tax Ledger Mismatch:<\/b><span style=\"font-weight: 400\"> Failing to reconcile turnover reported in GSTR-9 with revenue entries in profit and loss accounts.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Pending Director Acceptance on Portal:<\/b><span style=\"font-weight: 400\"> CAs upload reports close to the deadline, but directors forget to log in and approve them before midnight on September 30. Unaccepted reports count as late filings.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Incorrect Depreciation Claims:<\/b><span style=\"font-weight: 400\"> Applying Companies Act depreciation rates instead of Income Tax block rates (Clause 18).<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Inaccurate MSME Aging Lists:<\/b><span style=\"font-weight: 400\"> Omitting vendor registration categories leads to wrong Clause 43B(h) disclosures.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"What_Happens_If_You_Dont_Comply_Penalties_and_Risks\"><\/span><b>What Happens If You Don&#8217;t Comply: Penalties and Risks<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">Failing to complete statutory tax audit filings within prescribed deadlines triggers strict financial fines and restricts loss carry-forward benefits.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Monetary_Fines_Under_Section_271B\"><\/span><b>Monetary Fines Under Section 271B<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">If a company fails to get its accounts audited or does not submit the audit report by September 30, the Assessing Officer may levy a penalty under Section 271B. The penalty equals <\/span><b>0.5% of total sales, turnover, or gross receipts<\/b><span style=\"font-weight: 400\">, capped at a maximum of <\/span><b>\u20b91,50,000<\/b><span style=\"font-weight: 400\">.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Section_234A_Interest_and_Loss_Forfeiture\"><\/span><b>Section 234A Interest and Loss Forfeiture<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Delaying the tax audit delays annual <\/span><a href=\"https:\/\/www.legalraasta.com\/income-tax-return\/\"><span style=\"font-weight: 400\">Income Tax Return<\/span><\/a><span style=\"font-weight: 400\"> (ITR-6) filing past October 31. Consequences include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Section 234A Interest:<\/b><span style=\"font-weight: 400\"> 1% interest per month on unpaid tax balance.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Section 234F Late Fee:<\/b><span style=\"font-weight: 400\"> Mandatory penalty fees for late return submission.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Loss of Carry-Forward Rights:<\/b><span style=\"font-weight: 400\"> Business losses cannot be carried forward to offset future profits if the ITR is filed past the due date.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"How_LegalRaasta_Delivers_Expert_Tax_Audit_Services\"><\/span><b>How LegalRaasta Delivers Expert Tax Audit Services<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">Professional compliance management simplifies complex tax reporting while providing reliable legal support for growing Indian companies.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Structured_CA-Led_Audit_Process\"><\/span><b>Structured CA-Led Audit Process<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">LegalRaasta offers a comprehensive <\/span><b>Tax Audit Service for Companies<\/b><span style=\"font-weight: 400\"> across India, pairing tech-enabled tracking with experienced CAs. We manage document collection, GST-ITR reconciliation, TDS audit, Form 3CD compilation, and final portal upload. Services start at transparent fees with zero hidden charges.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Feature \/ Parameter<\/b><\/p>\n<\/td>\n<td>\n<p><b>DIY \/ In-House Management<\/b><\/p>\n<\/td>\n<td>\n<p><b>LegalRaasta Expert Audit<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Form 3CD Clause Audit<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">High risk of missing new rules<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Complete 44-clause CA verification<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>GST vs Book Reconciliation<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Manual, error-prone spreadsheets<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Tech-assisted, automated reconciliation<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>MSME Clause 43B(h) Audit<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Difficult vendor aging tracking<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Systematic vendor classification &amp; aging<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Portal Support<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Portal glitches &amp; missed approvals<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">End-to-end filing &amp; DSC assistance<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Post-Audit Query Support<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Internal team handles notices<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Expert assistance for notice responses<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><b>Conclusion<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">Tax audits are not optional once you cross the turnover threshold. Every company that qualifies under Section 44AB must get the audit done, file Form 3CA-3CD, and meet the 30 September deadline or pay for the delay.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The penalty is not massive in absolute terms. Rs 1.5 lakh maximum under Section 271B. But the real damage is bigger. A late or missed Tax Audit Service for Companies creates a chain reaction: delayed ITR, disqualified loss carry-forward, scrutiny notices, and a compliance record that investors and banks will see.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Getting this done properly is not just about filing a form. It is about accurate income reporting, GST reconciliation, correct depreciation, and all the disclosures in Form 3CD that the tax department reviews directly.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Companies with international transactions need Form 3CEB by 31 October 2026 on top of the standard 30 September deadline. Transfer pricing adds a layer that most generalist CAs are not equipped to handle.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Connect with <\/span><b>LegalRaasta <\/b><span style=\"font-weight: 400\">today and get your Tax Audit Service for Companies completed by a qualified CA so your filings are accurate, on time, and compliant for Assessment Year 2026-27.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><b>Frequently Asked Questions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Who_needs_a_Tax_Audit_Service_for_Companies_in_India\"><\/span><b>1. Who needs a Tax Audit Service for Companies in India?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Any company whose total sales, turnover, or gross receipts exceed Rs 1 crore in a financial year must get a <\/span><b>Tax Audit Service for Companies<\/b><span style=\"font-weight: 400\"> under Section 44AB. The limit extends to Rs 10 crore if cash transactions are below 5% of total receipts and payments throughout the year.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_What_is_the_tax_audit_due_date_for_companies_in_2026\"><\/span><b>2. What is the tax audit due date for companies in 2026?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">The <\/span><b>Tax Audit Service for Companies<\/b><span style=\"font-weight: 400\"> report using Form 3CA-3CD must be uploaded on the income tax e-filing portal by 30 September 2026 for Assessment Year 2026-27. Companies with international transactions additionally file Form 3CEB by 31 October 2026 under Section 44AB transfer pricing rules.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_What_forms_are_used_for_corporate_tax_audits_in_India\"><\/span><b>3. What forms are used for corporate tax audits in India?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">A <\/span><b>Tax Audit Service for Companies in India<\/b><span style=\"font-weight: 400\"> uses Form 3CA alongside Form 3CD. Form 3CA applies because companies already undergo a statutory audit. Non-corporate entities use Form 3CB instead. Form 3CD contains 44 clauses covering loans, depreciation, TDS, GST reconciliation, and related party transactions.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_What_penalty_applies_for_missing_the_corporate_tax_audit_deadline\"><\/span><b>4. What penalty applies for missing the corporate tax audit deadline?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Missing the <\/span><b>Tax Audit Service for Companies<\/b><span style=\"font-weight: 400\"> deadline under Section 271B attracts a penalty of 0.5% of total turnover or gross receipts. The maximum penalty is Rs 1.5 lakh. Repeated defaults also invite scrutiny notices and can disqualify loss carry-forward claims in that assessment year.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_What_documents_are_needed_for_a_company_tax_audit_in_India\"><\/span><b>5. What documents are needed for a company tax audit in India?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">For a <\/span><b>Tax Audit Service for Companies in India<\/b><span style=\"font-weight: 400\">, the auditor needs audited financial statements, GST returns for all 12 months, <\/span><a href=\"https:\/\/www.legalraasta.com\/tds-return\/\"><span style=\"font-weight: 400\">TDS returns<\/span><\/a><span style=\"font-weight: 400\"> and challans, fixed asset registers, loan account statements, bank reconciliation statements, and details of related party transactions and cash transactions during the financial year.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"6_Can_a_company_file_its_ITR_before_completing_the_tax_audit\"><\/span><b>6. Can a company file its ITR before completing the tax audit?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">No. The <\/span><b>Tax Audit Service for Companies<\/b><span style=\"font-weight: 400\"> must be completed and Form 3CA-3CD uploaded before the company files its income tax return. Filing ITR without the completed audit report is treated as non-compliance and can attract both penalty and interest on any outstanding tax liability.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"7_Who_conducts_a_Tax_Audit_Service_for_Companies_in_India\"><\/span><b>7. Who conducts a Tax Audit Service for Companies in India?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Only a practising Chartered Accountant holding a valid Certificate of Practice can conduct and sign the <\/span><b>Tax Audit Service for Companies<\/b><span style=\"font-weight: 400\"> report. The CA submits the audit report directly on the income tax e-filing portal after completing verification of the company&#8217;s books and financial statements.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"8_Does_GST_reconciliation_form_part_of_the_company_tax_audit\"><\/span><b>8. Does GST reconciliation form part of the company tax audit?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Yes. GST reconciliation is a specific disclosure requirement in Form 3CD. The <\/span><b>Tax Audit Service for Companies<\/b><span style=\"font-weight: 400\"> verifies that turnover reported in GSTR-1 and GSTR-3B matches the figures in the company&#8217;s audited profit and loss account. Mismatches flagged here often lead to subsequent GST departmental scrutiny.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"9_What_is_the_turnover_threshold_for_tax_audit_if_a_company_makes_mostly_digital_payments\"><\/span><b>9. What is the turnover threshold for tax audit if a company makes mostly digital payments?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">A company making 95% or more of its transactions digitally can use the <\/span><b>Tax Audit Service for Companies<\/b><span style=\"font-weight: 400\"> threshold of Rs 10 crore instead of the standard Rs 1 crore. Cash transactions must stay below 5% of both total receipts and total payments throughout the financial year to qualify.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"10_How_does_LegalRaasta_help_with_Tax_Audit_Service_for_Companies\"><\/span><b>10. How does LegalRaasta help with Tax Audit Service for Companies?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">LegalRaasta connects companies with qualified practising CAs who handle the complete <\/span><b>Tax Audit Service for Companies<\/b><span style=\"font-weight: 400\"> process, including books review, Form 3CA-3CD preparation, GST reconciliation, e-filing portal upload, and transfer pricing documentation, so every corporate tax audit is completed accurately before the 30 September 2026 deadline.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Every Private Limited, Public Limited, and One Person Company operating in India works under strict legal scrutiny. Beyond the annual statutory audit required by the Companies Act 2013, crossing specific sales limits makes a tax audit mandatory under the Income Tax Act 1961. Choosing a professional Tax Audit Service for Companies in India helps management teams [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":36545,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4118],"tags":[],"class_list":["post-36544","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-taxation"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tax Audit Service for Companies in India 2026: Complete Guide<\/title>\n<meta name=\"description\" content=\"Tax audit service for companies in India, including eligibility, requirements, documents, process, due dates, fees and penalties in 2026.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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