Tax audit under Section 44AB of the Income-tax Act, 1961 — and Section 63 of the Income-tax Act, 2025 from Tax Year 2026-27 — with disallowance review, depreciation schedules and Income Tax Return preparation for firms, LLPs and companies.
Tax audit obligations for FY 2025-26 (AY 2026-27) continue under Section 44AB of the Income-tax Act, 1961, with the report filed in Forms 3CA/3CB/3CD by 30 September 2026. From Tax Year 2026-27, the corresponding provision is Section 63 of the Income-tax Act, 2025, and the report is furnished in Form No. 26.
The thresholds are substantially carried forward. Audit applies where business turnover exceeds ₹1 crore, or ₹10 crore where cash receipts and cash payments each stay within 5% of the total. For professionals, audit applies where gross receipts exceed ₹50 lakh. Audit is also triggered where income is declared below the rates specified in the presumptive provisions — Sections 44AD, 44ADA and 44AE of the 1961 Act, consolidated as Section 58 of the Income-tax Act, 2025.
The Income-tax Act, 2025 came into force on 1 April 2026 and applies from Tax Year 2026-27 onwards. Filings for FY 2025-26 (AY 2026-27) continue to be governed by the Income-tax Act, 1961, including Forms 3CA, 3CB and 3CD. Our engagement letters and working papers reference both frameworks during the transition period.
The full statement of particulars — depreciation schedules, related-party transactions, loans and deposits, and MSME payment reporting. Filed as Form 3CA/3CB/3CD up to AY 2026-27, and as Form No. 26 from Tax Year 2026-27.
Verification of cash payments against the ₹10,000 per person per day limit (₹35,000 for goods transport operators), to identify disallowance exposure before the return is filed. [VERIFY — Section 40A(3) / IT Act 2025 equivalent]
Testing statutory liabilities — GST, PF, ESI and MSME dues — against Section 43B of the Income-tax Act, 1961 (Section 37 of the Income-tax Act, 2025), which permits deduction only in the year of actual payment.
Preparation and e-filing of ITR-3, ITR-5 and ITR-6 and their successors under the Income-tax Act, 2025, with acknowledgement verification on every filing.
The Income-tax Act, 2025 removes the twin concepts of "Previous Year" and "Assessment Year" and replaces them with a single Tax Year. Income earned in the year ending 31 March 2027 is simply the income of Tax Year 2026-27 — there is no separate assessment year to track. Returns, audit reports and TDS statements from 1 April 2026 all reference the Tax Year. Filings relating to FY 2025-26 and earlier continue to use AY terminology under the 1961 Act.
30 September 2026 for filing the audit report, with the corresponding return generally due 31 October 2026. Confirm current dates before relying on them, as extensions are common.
Under the 1961 Act, 0.5% of turnover or gross receipts, subject to a maximum of ₹1,50,000, unless reasonable cause is shown. The corresponding provision continues under the Income-tax Act, 2025.
Where income is declared in line with the presumptive rates and other conditions are met, audit is not required. Where declared income falls below those rates, audit is triggered — and under Section 63 of the Income-tax Act, 2025 this trigger operates more strictly than it did under Section 44AB.
Related: Statutory Audit · GST Compliance · Virtual CFO Services
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