A Tax Audit is a review of a business's accounts by a CA to ensure they comply with the Income Tax Act.

What is the turnover limit for a Tax Audit?

For businesses, it is ₹1 Crore (up to ₹10 Crore if 95% of transactions are digital). For professionals, it is ₹50 Lakhs.

When is the due date for TDS returns?

TDS returns are filed quarterly: 31st July, 31st October, 31st January, and 31st May.

What is the late fee for TDS returns?

A late fee of ₹200 per day is charged for the period of delay, up to the total amount of TDS deducted.

Can I deduct expenses if TDS is not paid?

No, 30% of the expense amount will be 'disallowed' (added back to your income) if you fail to deduct/pay TDS.

TAN is the Tax Deduction and Collection Account Number mandatory for anyone responsible for deducting tax at source.

Form 16 is a TDS certificate issued annually to employees showing their total salary and the tax deducted.

Is Tax Audit the same as Statutory Audit?

No, Statutory Audit is under the Companies Act for ROC, while Tax Audit is specifically for the Income Tax department.

Service

Tax Audit Services & TDS Return Filing

Expert CA-led tax audits and TDS compliance. We help with quarterly TDS returns, certificate issuance, and comprehensive business tax audits.

Corporate Tax Vigilance

Expert CA-led tax audits and TDS compliance. We help with quarterly TDS returns, certificate issuance, and comprehensive business tax audits.

Professional tax audit services and quarterly TDS return filing. Ensure your business complies with the auditing and withholding tax norms of the Income Tax Act.

Precision in business taxes. Stay ahead of regulatory requirements with expert Tax Audits and timely TDS filings for your business operations.

For businesses and professionals, tax compliance goes beyond just filing an annual return. The Income Tax Act requires a formal 'Tax Audit' by a Chartered Accountant for entities exceeding specific turnover limits. This audit ensures that the books of accounts are properly maintained and that tax is calculated in accordance with the law.

Parallelly, businesses act as tax collectors for the government through the Tax Deducted at Source (TDS) mechanism. If you make payments for salaries, rent, professional fees, or contracts, you must deduct tax and file quarterly returns. Managing these withholdings accurately is critical to avoid interest, penalties, and the disallowance of expenses in your own tax return.

QuickTaxperts provides a specialized business tax team that handles the rigorous process of Tax Audits (Form 3CD) and the recurring quarterly cycle of TDS returns and certificates.

Category: Taxation
Tax Audit is mandatory if business turnover exceeds ₹1 Crore (₹10 Cr for digital businesses).
TDS returns must be filed quarterly by the 31st of the following month.
Requires matching of TDS payments with the TRACES portal.
Prevents heavy penalties (₹200 per day) for late TDS filing.
Mandatory Tax Audit under Section 44AB for large turnovers
Quarterly filing of TDS returns (Salaries and Non-Salaries)
Issuance of TDS certificates (Form 16 and 16A) for vendors/staff
Compliance with withholding tax rates and deposit timelines

The Statutory Tax Audit

Verifying your business financials.

Turnover Check: Verifying if your business meets the threshold for mandatory audit (Section 44AB).
Form 3CB/3CD: Drafting the detailed audit report and annexures required by the department.
Expense Review: Checking for inadmissible expenses and proper documentation for tax claims.
Online Submission: Filing the audit report on the Income Tax portal using the CA's digital signature.

TDS Withholding Compliance

Quarterly reporting of tax deducted.

Form 24Q: Quarterly statement for tax deducted from salaries paid to employees.
Form 26Q: Quarterly statement for tax deducted on payments other than salaries (Rent, Pro Fees).
Form 27Q: Quarterly statement for tax deducted on payments to non-residents (NRIs).
TRACES Portal: Downloading and issuing TDS certificates (Form 16/16A) to deductees.

Documents required

Document requirements vary by entity type, state, premises, and authority. These are the usual groups we verify before submission.

Audit & TDS Checklist: Audited Financial Statements and Tally/ERP backup.; Monthly TDS challans and payment proofs.; List of vendors with their PAN and nature of service.; Employee salary details and investment declarations.; Bank Statements for the entire financial year.; Fixed Asset Register and depreciation calculations.; TAN (Tax Deduction and Collection Account Number).

Process and timeline

Data Review: Continuous review of your books for TDS applicability on payments.
Monthly Deposit: Assisting in the timely payment of TDS to the government (by 7th of every month).
Quarterly Filing: Preparing and filing the TDS returns (24Q/26Q) on the TRACES/NSDL portal.
Audit Execution: Conducting the on-site or remote tax audit and verifying business records.
Final Certification: Signing and uploading the Tax Audit Report (Form 3CD) on the portal.

Expert review

Tax Audit Services & TDS Return Filing content is reviewed by QuickTaxperts Tax Team, Chartered Accountants.

Checklist-led review
Document pre-verification
Authority-specific next steps

Frequently asked questions

These quick answers cover common planning questions before you request a checklist or quote.

What is a Tax Audit?: A Tax Audit is a review of a business's accounts by a CA to ensure they comply with the Income Tax Act.
What is the turnover limit for a Tax Audit?: For businesses, it is ₹1 Crore (up to ₹10 Crore if 95% of transactions are digital). For professionals, it is ₹50 Lakhs.
When is the due date for TDS returns?: TDS returns are filed quarterly: 31st July, 31st October, 31st January, and 31st May.
What is the late fee for TDS returns?: A late fee of ₹200 per day is charged for the period of delay, up to the total amount of TDS deducted.
Can I deduct expenses if TDS is not paid?: No, 30% of the expense amount will be 'disallowed' (added back to your income) if you fail to deduct/pay TDS.
What is a TAN?: TAN is the Tax Deduction and Collection Account Number mandatory for anyone responsible for deducting tax at source.
What is Form 16?: Form 16 is a TDS certificate issued annually to employees showing their total salary and the tax deducted.
Is Tax Audit the same as Statutory Audit?: No, Statutory Audit is under the Companies Act for ROC, while Tax Audit is specifically for the Income Tax department.