Tax Audit Under Section 44AB — Guide for Tax Year 2026-27

Updated: 3 June 2026 | Income-tax Act, 2025 | Due Date: 30 Sep 2026

Tax audit under Section 44AB is mandatory for businesses with turnover above ₹1 crore (₹10 crore if ≤5% cash) and professionals with receipts above ₹50 lakh. A practising CA conducts the audit and submits Form 3CD on the income tax portal by 30 September 2026. Non-compliance penalty: 0.5% of turnover or ₹1,50,000 (whichever is lower).

30 Sep 2026

Tax audit report due date for Tax Year 2026-27. ITR due: 31 October 2026.
Form 3CA/3CB + Form 3CD to be filed on income tax portal by CA.

When is Tax Audit Mandatory?

Situation	Threshold	Form
Business (normal)	Turnover > ₹1 crore	Form 3CB + 3CD
Business (≤5% cash transactions)	Turnover > ₹10 crore	Form 3CB + 3CD
Profession (doctor, CA, lawyer, etc.)	Gross receipts > ₹50 lakh	Form 3CB + 3CD
Accounts audited under other law (Companies Act)	Any turnover	Form 3CA + 3CD
Opted out of Section 44AD presumptive and income > basic exemption	Any turnover	Form 3CB + 3CD
Opted out of Section 44ADA presumptive	Receipts > ₹25 lakh	Form 3CB + 3CD

Tax Audit — Key Forms

Form 3CA: For taxpayers whose accounts are already audited under Companies Act, LLP Act, or other law. The CA certifies the audit report.

Form 3CB: For other taxpayers (sole proprietors, partnerships, etc.) not required to audit under other laws. The CA audits and certifies.

Form 3CD: Detailed tax audit report (40+ clauses) — filed along with 3CA or 3CB. Covers: income details, depreciation, expenses claimed, related-party transactions, TDS compliance, unexplained credits, and more.

Frequently Asked Questions

What is the turnover limit for tax audit under Section 44AB?

Tax audit is required under Section 44AB if business turnover exceeds ₹1 crore (₹10 crore if cash transactions are ≤ 5% of total) or professional receipts exceed ₹50 lakh. Also required if taxpayer opts out of presumptive taxation (44AD/44ADA) and income exceeds basic exemption limit.

Who performs tax audit in India?

Tax audit under Section 44AB must be conducted by a practising Chartered Accountant (CA). The CA issues Form 3CA (for those whose accounts are required to be audited under other laws like Companies Act) or Form 3CB (others) along with Form 3CD (detailed audit report). Report must be submitted before the ITR filing due date.

What is the due date for tax audit report submission?

Tax audit report (Form 3CA/3CB + 3CD) must be submitted on the income tax portal by 30 September of the following year (for Tax Year 2026-27: by 30 September 2026). ITR deadline for audit cases: 31 October 2026. Penalty for late submission: ₹1.5 lakh or 0.5% of turnover (whichever is lower).

What is the penalty for not getting tax audit done?

Penalty under Section 271B: 0.5% of turnover/gross receipts (whichever is applicable) or ₹1,50,000 — whichever is lower. The penalty can be waived if taxpayer demonstrates "reasonable cause" for non-compliance (e.g., death/illness of auditor, natural disaster).

Is tax audit the same as statutory audit (Companies Act)?

No. Statutory audit under Companies Act is conducted by a company's appointed auditor for Companies Act compliance. Tax audit under Income Tax Act (Section 44AB) is specifically for income tax purposes. Both may be done by the same or different CAs, but they have different scopes, forms, and due dates.

ITR Filing Due Date Section 44AD Presumptive Tax Income Tax Return Filing Compliance Calendar Bookkeeping Services

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