Glossary · Audit
Tax Audit (Section 44AB)
Also known as: 44AB audit, tax audit
A tax audit under Section 44AB is an audit of a taxpayer's accounts by a Chartered Accountant. Business turnover above ₹1 crore (or ₹10 crore if cash transactions are 5% or less) and profession receipts above ₹50 lakh trigger it. The report is filed in Form 3CA/3CB with 3CD.
A tax audit under Section 44AB is the Chartered Accountant’s examination and certification of a taxpayer’s books of account. It does not compute the tax. It confirms that the accounts present a true picture and that the prescribed particulars are reported correctly.
How it works
A taxpayer falls under 44AB once they cross these thresholds:
- Business: turnover above ₹1 crore (raised to ₹10 crore where cash receipts and payments are 5% or less of the total)
- Profession: gross receipts above ₹50 lakh
The audit report is filed as Form 3CA/3CB along with the detailed Form 3CD statement of particulars. For the relevant year, the report is due by 30 September 2026. (Always confirm near the deadline — government extensions are common.)
Failure to get accounts audited or to furnish the report attracts a penalty under Section 271B of the lower of 0.5% of turnover or ₹1.5 lakh.
Because the audit report deadline precedes the audit-case ITR due date, firms work backwards from it. The audited figures also depend on clean TDS return data. Every certified report needs a UDIN generated from the ICAI portal.
In a busy season, the hard part is not the audit itself but knowing which clients have crossed the thresholds and where each 3CD stands. See how the tools compare on audit workflows in our rankings, and browse related terms in the glossary.