TAX AUDIT CHECKLIST (SECTION 44AB)
For FY 2025-26 (AY 2026-27) · Audit report due 30 September 2026, ITR due 31 October 2026
Applicability
- ☐ Business turnover above Rs. 1 crore (Rs. 10 crore if cash receipts/payments ≤ 5%)
- ☐ Professional gross receipts above Rs. 75 lakh
- ☐ Presumptive taxpayer declaring lower profit than 44AD/44ADA
- ☐ Appoint the tax auditor and obtain the engagement letter
Books & Records
- ☐ Finalise the trial balance, P&L and balance sheet
- ☐ Reconcile bank statements and cash book
- ☐ Verify stock valuation and quantitative details
- ☐ Reconcile turnover with GST returns filed
Form 3CD Reporting
- ☐ Verify method of accounting and any change (Clause 13)
- ☐ Report disallowances under Section 40, 40A(3) and 43B
- ☐ Check TDS/TCS deduction and 26Q reconciliation (Clause 34)
- ☐ Report loans/deposits under Section 269SS / 269T
- ☐ Compute ICDS adjustments and depreciation as per the Act
- ☐ Report MSME and payments outstanding beyond due dates
Finalisation
- ☐ Prepare Form 3CA (audited) or 3CB with the 3CD annexure
- ☐ Obtain the auditor’s UDIN and management representation letter
- ☐ File the audit report on the portal and accept it from the taxpayer login
Failure to get accounts audited or furnish the report attracts penalty under Section 271B of 0.5% of turnover, up to Rs. 1,50,000.