📢 Income Tax Due Date Alert – Audit Report u/s 44AB

 

Tax compliance plays a crucial role in ensuring the smooth functioning of businesses and individuals who fall under the ambit of the Income Tax Act, 1961. One of the most important compliances in this regard is the filing of a Tax Audit Report under Section 44AB. With the due date for filing the audit report for Financial Year (FY) 2024–25 / Assessment Year (AY) 2025–26 approaching soon, every taxpayer liable to tax audit must act promptly to avoid penalties and stay compliant.

The due date for filing the Tax Audit Report (TAR) under Section 44AB for FY 2024–25 is 30th September 2025. Let us understand in detail what this requirement means, who needs to comply, and why timely filing is so important.

What is a Tax Audit under Section 44AB?

A tax audit is essentially an independent examination of the accounts of a taxpayer, carried out by a chartered accountant (CA), to ensure that the books of account and other records are properly maintained and reflect a true and fair view of the taxpayer’s income.

The purpose of the tax audit is:

  • To ensure that the taxpayer complies with various provisions of the Income Tax Act.

  • To report observations or discrepancies in the prescribed format (Form 3CA/3CB and Form 3CD).

  • To assist the Income Tax Department in verifying income computations, claims, and deductions more efficiently.

Who is Required to File a Tax Audit Report?

As per Section 44AB of the Income Tax Act, 1961, the following categories of taxpayers must get their accounts audited and file the audit report:

  1. Businesses

    • If total sales, turnover, or gross receipts exceed ₹1 crore in the financial year.

    • The limit is increased to ₹10 crore where the aggregate of cash receipts and cash payments does not exceed 5% of total receipts/payments.

  2. Professionals

    • If gross receipts from a profession exceed ₹50 lakhs in the financial year.

  3. Presumptive Taxation Scheme (u/s 44AD, 44ADA, 44AE, etc.)

    • If a taxpayer claims income lower than the deemed income under the presumptive scheme and total income exceeds the basic exemption limit, a tax audit is mandatory.

  4. Other Specific Cases

    • Businesses declaring profits lower than the presumptive rate under Section 44AE, 44BB, or 44BBB.

    • Professionals opting out of presumptive taxation under Section 44ADA.

Thus, every corporate assessee or non-corporate assessee required to file their income tax return by 31st October 2025 must first ensure that their Tax Audit Report is filed on or before 30th September 2025.

Due Date for Filing Tax Audit Report

  • Statutory Due Date: 30th September 2025

  • Applicability: All assessees who are required to file their return of income by 31st October 2025 must file their Tax Audit Report one month earlier, by 30th September.

This sequencing ensures that the audit is completed before the final return of income is filed.

Forms Used for Tax Audit Report

The tax audit report is submitted electronically using the following forms:

  • Form 3CA – Applicable to assessees already required to get their accounts audited under another law (like Companies Act).

  • Form 3CB – Applicable to all other assessees who are not required to get accounts audited under any other law.

  • Form 3CD – Statement of particulars to be furnished along with Form 3CA/3CB, containing detailed information about income, deductions, loans, depreciation, etc.

The audit report must be filed by a Chartered Accountant (CA) through the e-filing portal, and the assessee must approve the report using their login credentials.

Penalty for Non-Compliance

Failure to file the tax audit report within the due date can attract significant penalties under Section 271B of the Income Tax Act:

  • ₹1,50,000 or 0.5% of total turnover/gross receipts, whichever is lower.

In addition to penalties, delayed filing may also cause scrutiny notices, disallowances, and loss of credibility in front of tax authorities. Hence, timely filing is critical.

Importance of Timely Filing

  1. Avoid Penalties – Filing before the due date saves the assessee from heavy monetary penalties.

  2. Smooth ITR Filing – Since the audit report details are required for filing the Income Tax Return, early filing ensures hassle-free ITR submission.

  3. Compliance Assurance – Regular audits enhance credibility and instill trust in financial statements.

  4. Better Financial Management – An audit often highlights financial irregularities, helping businesses strengthen internal controls.

Practical Tips for Taxpayers

  • Start Early – Don’t wait until the last week of September. Provide all necessary details and records to your CA in advance.

  • Maintain Records Properly – Ensure that books of account, invoices, vouchers, and receipts are accurate and up to date.

  • Check Applicability – Confirm whether Section 44AB applies to your case, especially if you are under presumptive taxation.

  • Coordinate with Professionals – Keep continuous communication with your auditor to avoid last-minute discrepancies.

Conclusion

The Tax Audit Report under Section 44AB is not just a compliance requirement but also a tool that strengthens financial discipline and transparency. With the due date of 30th September 2025 approaching for FY 2024–25, businesses and professionals must prioritize timely filing.

Delays can lead to penalties, increased compliance burden, and unnecessary stress. On the other hand, early filing ensures smooth ITR submission and complete peace of mind.

So, if you are liable for tax audit, act now and file your report well before the deadline.

📞 Contact us today: +91 7305701454
📧 Email: auditsiva2@gmail.com
🌐 Website: www.taxlaservices.com

#BestAuditorInTamilnadu #TaxAudit #Section44AB #TaxCompliance #TaxAuditReport #TaxlaServices



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