Tax Audit Services in Gurgaon under Section 44AB

Looking for professional Tax Audit Services in Gurgaon for your business or professional practice?

CA Hemant Garg provides tax audit, books finalisation, financial-statement preparation and income tax compliance services to proprietorship firms, professionals, partnership firms, LLPs, companies, traders, manufacturers, contractors, consultants and service providers across Gurgaon and Gurugram.

A tax audit is not limited to uploading Form 3CD on the Income Tax Portal. It requires a detailed examination of the books of account, turnover, expenses, statutory deductions, loans, cash transactions, related-party payments, GST records, TDS compliance and other reportable particulars.

Our tax audit process is designed to identify accounting and compliance issues before the audit report and income tax return are finalised.

For professional assistance with a Tax Audit in Gurgaon, call or WhatsApp CA Hemant Garg at +91 83688 37889.

What Is a Tax Audit?

A tax audit is an examination of the books of account of a person carrying on business or profession from the perspective of income tax compliance.

Section 44AB prescribes the categories of taxpayers who are required to get their accounts audited by a Chartered Accountant. The auditor reports the findings and prescribed particulars through Form 3CA or Form 3CB along with Form 3CD. ([Etds][3])

The purpose of a tax audit includes:

• Verification of books of account
• Review of financial statements
• Examination of income and expenses
• Reporting of prescribed tax particulars
• Identification of inadmissible expenditure
• Review of TDS and statutory compliance
• Examination of specified payments and transactions
• Assistance in accurate computation of taxable income
• Reporting information required under Form 3CD

A tax audit does not automatically mean that the taxpayer has committed a default. It is a statutory compliance requirement applicable when the prescribed conditions are satisfied.

Tax Audit Services Offered in Gurgaon

CA Hemant Garg provides end-to-end assistance covering:

• Tax audit applicability review
• Turnover and gross-receipt verification
• Review and finalisation of books
• Preparation of trial balance
• Profit and loss account preparation
• Balance sheet preparation
• Bank reconciliation
• Customer and vendor reconciliation
• GST turnover reconciliation
• TDS compliance review
• Fixed-asset and depreciation review
• Inventory and closing-stock review
• Form 3CA or Form 3CB preparation
• Form 3CD clause-wise reporting
• Tax audit report uploading
• UDIN-related compliance
• Income tax computation
• Business income tax return filing
• Response to audit-related tax queries

The scope may be customised according to the size, constitution and accounting condition of the taxpayer.

Who Is Required to Get a Tax Audit?

Tax audit applicability depends on the nature of activity, turnover or gross receipts, cash-transaction percentage, presumptive-taxation provisions and income declared by the taxpayer.

Tax Audit for Businesses

Under the general provision, a person carrying on business is required to obtain a tax audit where total sales, turnover or gross receipts exceed ₹1 crore during the financial year.

However, the threshold can increase to ₹10 crore where:

• Aggregate cash receipts do not exceed 5% of total receipts; and
• Aggregate cash payments do not exceed 5% of total payments.

For this purpose, certain non-account-payee cheques or drafts may also be treated as cash. ([Etds][2])

The cash percentage should be calculated carefully after reviewing all business and capital-account receipts and payments rather than only sales and routine expenses.

Tax Audit for Professionals

A person carrying on a profession is generally required to obtain a tax audit where gross professional receipts exceed ₹50 lakh during the financial year. ([Etds][2])

Professional receipts may include fees earned by:

• Doctors
• Lawyers
• Chartered Accountants
• Architects
• Engineers
• Technical consultants
• Interior decorators
• Medical professionals
• Other notified professionals

The tax treatment of a consultant or service provider depends on the actual nature of the activity. Every consultancy activity is not automatically treated as a specified profession.

Tax Audit under Presumptive Taxation

Tax audit may also become applicable in certain cases where a taxpayer:

• Claims income lower than the prescribed presumptive income;
• Has opted out of an applicable presumptive scheme;
• Falls within the restrictions attached to Section 44AD;
• Declares professional income below the prescribed percentage under Section 44ADA; or
• Declares lower income in cases covered by Section 44AE or other specified provisions.

The turnover limit for eligible presumptive businesses can extend from ₹2 crore to ₹3 crore where cash receipts do not exceed the prescribed 5% condition. For eligible professionals, the gross-receipt limit under Section 44ADA can extend from ₹50 lakh to ₹75 lakh where the specified low-cash condition is satisfied. ([Etds][4])

Presumptive taxation and tax audit applicability should be reviewed together because turnover alone may not provide the complete answer.

Is Tax Audit Applicable When Turnover Is Below ₹1 Crore?

Tax audit may still become applicable even when business turnover is below ₹1 crore.

This may happen where:

• The taxpayer declares profit below the prescribed presumptive rate;
• Section 44AD restrictions apply after opting out of the scheme;
• The taxpayer is covered by another specific audit clause;
• Professional receipts and income declaration trigger audit requirements;
• A special business covered by presumptive provisions declares lower income.

Therefore, tax audit applicability should not be decided only by comparing turnover with ₹1 crore.

How Is Turnover Calculated for Tax Audit?

Determination of turnover is one of the most important parts of tax audit applicability.

Depending on the nature of business, turnover may require consideration of:

• Sales invoices
• Service revenue
• Export turnover
• Sales returns
• Discounts
• GST treatment
• Commission income
• Brokerage
• Speculative transactions
• Futures and options transactions
• Intraday trading
• Delivery-based share trading
• Digital-asset trading
• Foreign-currency transactions
• Agency transactions
• Reimbursements
• Scrap sales
• Other operating income

The method of turnover calculation may differ for a trader, commission agent, service provider, stock-market trader and manufacturer.

Before confirming tax audit applicability, the nature of transactions and applicable turnover methodology should be examined.

Tax Audit for Futures and Options Traders

Futures and options transactions may result in profit or loss, but tax audit applicability is based on turnover calculated according to the relevant accounting and professional guidance rather than only the gross value of contracts.

Our assistance for F&O traders may include:

• Broker statement review
• Turnover calculation
• Profit and loss reconciliation
• Treatment of charges and expenses
• Review of trading losses
• Bank and broker-ledger reconciliation
• Assessment of tax audit applicability
• Books-of-account preparation
• Financial-statement preparation
• Tax audit and ITR filing

Where there are transactions through multiple brokers, the reports should be consolidated before determining turnover and final income.

Tax Audit for Share Traders and Investors

Tax treatment depends on whether transactions are held as investments or conducted as a business activity.

We assist with:

• Delivery-based share transactions
• Intraday trading
• Futures and options
• Commodity trading
• Currency derivatives
• Mutual-fund transactions
• Multiple demat accounts
• Broker-wise reconciliation
• AIS and TIS reconciliation
• Capital gain and business income classification
• Turnover computation
• Expense review

The classification should be based on facts, transaction pattern, accounting treatment and the taxpayer’s conduct.

Tax Audit for Proprietorship Firms

Our tax audit services for proprietors may include:

• Capital and drawings reconciliation
• Personal and business transaction segregation
• Sales and purchase review
• Bank reconciliation
• Loan and advance verification
• GST and TDS reconciliation
• Expense-voucher review
• Fixed-asset schedule
• Closing-stock review
• Cash-book scrutiny
• Financial-statement preparation
• Form 3CB-3CD filing
• Proprietor’s income tax return

Transactions passing through the proprietor’s personal bank accounts may also require review where they relate to the business.

Tax Audit for Partnership Firms

Tax audit services for partnership firms may include:

• Partnership deed review
• Partner-capital account verification
• Partner current-account reconciliation
• Profit-sharing ratio review
• Partner remuneration review
• Interest on partners’ capital
• Admission or retirement of partners
• Related-party transaction reporting
• Loan and deposit review
• GST and TDS reconciliation
• Financial-statement preparation
• Form 3CB-3CD filing
• Firm and partner tax-computation support

Partner remuneration and interest should be examined with reference to the partnership deed and applicable income tax provisions.

Tax Audit for LLPs

An LLP may be subject to audit under different laws depending on its turnover, contribution and tax position.

Our LLP tax audit assistance may include:

• LLP agreement review
• Partner contribution verification
• Profit-sharing review
• Books finalisation
• Statutory and tax audit coordination
• TDS compliance review
• GST reconciliation
• Partner remuneration and interest review
• Form 3CA or 3CB selection
• Form 3CD reporting
• Income tax return preparation

Where the accounts have already been audited under another applicable law, the correct tax audit form should be selected accordingly.

Tax Audit for Companies

Companies are generally required to undergo statutory audit under company law. Where Section 44AB is also applicable, the tax audit report is ordinarily furnished in Form 3CA along with Form 3CD.

Form 3CA-3CD applies where the accounts are required to be audited under another law. Form 3CB-3CD applies where the accounts are not required to be audited under another law. ([Income Tax Department][5])

Our company tax audit support may include:

• Coordination with statutory financial statements
• Trial-balance review
• GST and TDS reconciliation
• Fixed-asset and depreciation review
• Related-party transaction details
• Director transactions
• Share-capital records
• Loan and deposit review
• Expense disallowance review
• MSME payable reporting support
• Clause-wise Form 3CD preparation
• Corporate income tax computation
• Company ITR filing

Tax Audit for Professionals

We assist doctors, architects, engineers, consultants and other professionals with:

• Professional receipt reconciliation
• Form 16A and Form 26AS review
• AIS and TIS reconciliation
• Bank receipt analysis
• Expense classification
• Fixed-asset records
• Staff and consultancy payments
• TDS compliance
• GST turnover reconciliation
• Presumptive-taxation comparison
• Tax audit applicability
• Financial-statement preparation
• Form 3CB-3CD and ITR filing

Receipts should be reconciled with TDS data and bank records before the tax audit is completed.

Form 3CA, Form 3CB and Form 3CD

Form 3CA

Form 3CA is generally applicable where the taxpayer’s accounts are required to be audited under another law, such as the statutory audit applicable to a company.

Form 3CB

Form 3CB is generally applicable where the taxpayer is not required to get the accounts audited under another law but is required to obtain a tax audit under income tax provisions.

Form 3CD

Form 3CD is the detailed statement of prescribed particulars attached to Form 3CA or Form 3CB.

The Income Tax Department confirms that Form 3CA or 3CB is the audit-report format, while Form 3CD contains the prescribed tax-audit particulars. ([Etds][6])

Form 3CD includes reporting related to matters such as:

• Basic taxpayer information
• Nature of business or profession
• Books maintained and examined
• Accounting method
• Stock valuation
• Depreciation
• Specified deductions
• Partner remuneration
• Inadmissible expenditure
• TDS and TCS compliance
• GST-related information
• Loans and deposits
• Cash receipts and payments
• Related-party payments
• Brought-forward losses
• Turnover ratios
• Other prescribed disclosures

The exact reporting requirements depend on the facts of the taxpayer.

Tax Audit Due Date

The normal tax audit deadline is generally 30 September of the relevant assessment year, subject to statutory changes, extensions and special cases.

For example, the official Income Tax Department guidance states that the tax audit report for Financial Year 2025-26, corresponding to Assessment Year 2026-27, should ordinarily be obtained by 30 September 2026. After the Chartered Accountant uploads the report, the taxpayer must accept it through the e-filing account. ([Etds][7])

Businesses should not wait until September to begin finalisation because bank reconciliation, stock details, confirmations and compliance mismatches may require substantial time to resolve.

Our Tax Audit Process

Step 1: Applicability Review

We review:

• Nature of business or profession
• Annual turnover or gross receipts
• Cash receipts
• Cash payments
• Presumptive-taxation history
• Profit declared
• Constitution of the taxpayer
• Other applicable audit requirements

A preliminary conclusion regarding tax audit applicability is then communicated.

Step 2: Document Checklist

A customised checklist is provided based on the taxpayer’s constitution and activities.

Step 3: Books-of-Account Review

The trial balance, ledgers, vouchers, invoices, bank accounts and supporting records are examined.

Step 4: Reconciliation

Important reconciliations may include:

• Turnover with GST returns
• Purchases with GST records
• TDS with Form 26AS
• Income with AIS and TIS
• Bank accounts with books
• Customer and vendor balances
• Loans with statements and confirmations
• Fixed assets with invoices
• Stock with inventory records
• Statutory liabilities with returns and challans

Step 5: Query Sheet

Unclear, unsupported or unreconciled transactions are listed for client clarification.

Examples may include:

• Unidentified bank credits
• Cash deposits
• Unsupported expenses
• Old customer balances
• Negative cash balance
• Unsecured loans
• Related-party payments
• Personal expenses in business books
• Missing invoices
• GST mismatches
• TDS defaults
• Unadjusted advances

Step 6: Accounts Finalisation

Required adjustment entries are considered for:

• Closing stock
• Depreciation
• Outstanding expenses
• Prepaid expenses
• Accrued income
• Provisions
• Foreign-exchange differences
• Bad debts
• Interest
• Taxes
• Partner remuneration
• Other year-end adjustments

Step 7: Financial Statements

The profit and loss account, balance sheet and relevant schedules are prepared or reviewed.

Step 8: Form 3CD Reporting

The applicable clauses are completed based on the books, documents, explanations and available compliance records.

Step 9: Tax Computation

Taxable income is computed after considering applicable additions, deductions, depreciation, brought-forward losses and other tax adjustments.

Step 10: Report Upload and Acceptance

The tax audit report is uploaded electronically by the appointed Chartered Accountant. The taxpayer must subsequently review and accept the report through the Income Tax Portal.

Step 11: Income Tax Return Filing

After completion of the audit, the applicable income tax return is prepared and filed based on the audited accounts and tax computation.

Documents Required for Tax Audit

The exact requirements depend on the taxpayer. Common documents include:

• PAN and basic entity documents
• Previous income tax return
• Previous tax audit report
• Trial balance
• Ledger accounts
• Cash book
• Bank book
• Bank statements
• Sales register
• Purchase register
• Sales invoices
• Purchase invoices
• Expense vouchers
• GST returns
• GST reconciliation
• TDS returns and challans
• Form 26AS
• AIS and TIS
• Stock summary
• Physical-stock details
• Fixed-asset register
• Loan statements
• Unsecured-loan confirmations
• Customer and vendor confirmations
• Partnership deed or LLP agreement
• Partner remuneration details
• Related-party transaction details
• Salary and payroll records
• MSME vendor details
• Foreign transaction details
• Details of brought-forward losses
• Details of deductions and incentives
• Major agreements and contracts

Additional information may be requested after reviewing the books.

GST and Tax Audit Reconciliation

Turnover reported in the financial statements should be reconciled with GST returns.

Differences may arise because of:

• Unbilled revenue
• Advances
• Credit notes
• Sales returns
• Exempt supplies
• Non-GST supplies
• Export turnover
• Branch transfers
• Year-end invoices
• Incorrect GST reporting
• Accounting cut-off differences
• Debit notes
• Other income

A difference does not automatically mean that one record is incorrect, but it should be properly explained and documented.

TDS Review during Tax Audit

Tax audit reporting requires examination of payments on which TDS may be applicable.

The review may cover:

• Salary
• Professional fees
• Contractor payments
• Rent
• Interest
• Commission
• Brokerage
• Purchase of goods
• Benefits or perquisites
• Payments to non-residents
• Other specified payments

We review whether:

• TDS was deducted;
• The applicable rate was used;
• Deduction was timely;
• Tax was deposited;
• TDS returns were filed;
• Expense disallowance may arise; and
• Books match the filed TDS data.

Cash Transaction Review

Cash transactions may affect:

• The applicable tax audit threshold
• Deductibility of expenditure
• Loan and deposit compliance
• Asset-purchase treatment
• Presumptive-taxation eligibility
• Reporting in Form 3CD

Our audit process may include review of:

• Cash sales
• Cash expenses
• Cash deposits
• Cash withdrawals
• Cash loans
• Cash repayments
• Cash purchase of assets
• Cash received from customers
• Cash paid to vendors
• Negative cash balances
• High-value transactions

Supporting documents and business explanations should be maintained for material cash transactions.

Loan and Deposit Review

Loans and deposits require careful review during a tax audit.

We may examine:

• Lender identity
• PAN
• Address
• Loan confirmation
• Bank statement
• Interest terms
• TDS on interest
• Mode of receipt
• Mode of repayment
• Opening and closing balance
• Related-party status
• Unsecured-loan documentation

Unexplained or inadequately documented credits can create future assessment risks.

Related-Party Transaction Review

Tax audit reporting may require details of specified payments and transactions with related persons.

The review may include:

• Partner remuneration
• Interest to partners
• Director remuneration
• Salary to relatives
• Rent paid to related parties
• Purchases and sales
• Loans and advances
• Reimbursements
• Professional fees
• Asset transfers

The nature, amount and commercial basis of material transactions should be documented.

Fixed Assets and Depreciation

Our fixed-asset review may include:

• Opening written-down value
• Asset additions
• Purchase invoices
• Date put to use
• Assets used for less than the prescribed period
• Sale or disposal of assets
• Block-wise classification
• Book depreciation
• Tax depreciation
• Personal-use adjustment
• Capitalisation of expenses
• Capital work in progress

Book depreciation and income tax depreciation may differ and should be separately calculated.

Inventory and Closing-Stock Review

Businesses dealing in goods may require review of:

• Opening stock
• Purchases
• Sales
• Production
• Job work
• Stock transfers
• Damaged stock
• Obsolete stock
• Physical verification
• Valuation method
• Gross-profit ratio
• Negative inventory
• Closing-stock quantity and value

The stock records should be consistent with the nature and scale of the business.

Common Issues Identified during Tax Audit

Common issues include:

• Incomplete books
• Unreconciled bank accounts
• GST turnover differences
• TDS defaults
• Negative cash balance
• Unsupported expenses
• Personal expenses recorded as business expenses
• Unconfirmed loans
• Incorrect depreciation
• Old receivables and payables
• Inventory differences
• Related-party transactions not separately identified
• Missing purchase invoices
• Incorrect capital and revenue classification
• Differences with AIS or Form 26AS
• Non-recording of credit notes
• Presumptive-taxation misunderstandings

Starting the audit process early provides more time to resolve these issues.

Tax Audit Services for Different Industries

We provide tax audit and accounts-finalisation assistance to:

• Traders
• Manufacturers
• Contractors
• Real-estate businesses
• Restaurants
• E-commerce sellers
• IT companies
• Digital marketing agencies
• Medical professionals
• Consultants
• Architects
• Interior designers
• Recruitment firms
• Transporters
• Exporters
• Importers
• Wholesalers
• Retailers
• Stock-market traders
• Professional service firms
• Startups
• MSMEs

The audit approach is adapted according to the nature of operations and records.

Why Choose CA Hemant Garg for Tax Audit Services in Gurgaon?

Chartered Accountant-Led Audit

The audit is handled with professional supervision and clause-wise review of the applicable tax requirements.

Books Finalisation Support

Where the accounts are incomplete, separate accounting and finalisation support may be provided before the audit is undertaken.

Reconciliation-Based Review

Important figures are compared with GST returns, TDS records, AIS, Form 26AS and bank statements.

Detailed Query Resolution

Unclear transactions are reported through a structured query process rather than being classified through unsupported assumptions.

Complete Tax Compliance Support

Tax audit, financial statements, tax computation and income tax return filing can be coordinated through one professional team.

Experience with Different Entities

Services are available for proprietorships, firms, LLPs, professionals and companies.

Online and In-Person Assistance

Documents can be shared online, while in-person consultation is available at our Gurgaon office.

Confidential Handling

Books, bank statements, tax records and business information are handled with professional care and confidentiality.

Tax Auditor Near Sector 54, Gurgaon

CA Hemant Garg provides tax audit and income tax services from:

3rd Floor, Innov8, Orchid Centre, near Sector 54 Chowk Metro Station, Sector 53, Gurugram, Haryana 122011

We serve businesses and professionals across:

• Sector 53
• Sector 54
• Sector 55
• Sector 56
• Golf Course Road
• Golf Course Extension Road
• DLF Phase 1
• DLF Phase 2
• DLF Phase 3
• DLF Phase 4
• DLF Phase 5
• Sushant Lok
• South City
• Cyber City
• Udyog Vihar
• MG Road
• Sohna Road
• Palam Vihar
• New Gurgaon
• Other parts of Gurgaon and Gurugram

Online tax audit services are also available for clients located outside Gurgaon.

Frequently Asked Questions

What is a tax audit under Section 44AB?

A tax audit is an examination of business or professional accounts by a Chartered Accountant to report prescribed income tax particulars through Form 3CA or Form 3CB along with Form 3CD.

What is the turnover limit for a business tax audit?

The general threshold is ₹1 crore. It may increase to ₹10 crore where cash receipts and cash payments do not exceed the prescribed 5% conditions.

What is the tax audit limit for professionals?

The general professional gross-receipt threshold under Section 44AB is ₹50 lakh.

Is tax audit compulsory when turnover exceeds ₹1 crore?

It may not be compulsory up to ₹10 crore where both the prescribed cash-receipt and cash-payment conditions are satisfied. Complete transactions should be reviewed before applying the higher threshold.

Can tax audit apply below ₹1 crore?

Yes. Tax audit may apply in certain presumptive-taxation cases or where other specified conditions are triggered.

Is a loss-making business required to obtain a tax audit?

A business loss alone does not determine audit applicability. Turnover, presumptive-taxation history, constitution and applicable statutory conditions should be reviewed.

Is tax audit applicable to an F&O loss?

It depends on calculated turnover, income declared, other business income and the applicable tax provisions. The gross contract value is generally not treated as turnover without applying the relevant methodology.

What is Form 3CB-3CD?

Form 3CB is the tax audit report where accounts are not required to be audited under another law. Form 3CD contains the detailed statement of prescribed particulars.

What is Form 3CA-3CD?

Form 3CA is generally used where the accounts have been audited under another law. Form 3CD is attached for the required tax particulars.

Can you prepare books before conducting the tax audit?

Separate accounting and finalisation support can be provided where the books are incomplete or require reconciliation before the audit.

Is GST reconciliation required for tax audit?

GST turnover and other relevant figures should ordinarily be reconciled with the books and financial statements. Material differences should be identified and explained.

Does the taxpayer need to accept the tax audit report?

Yes. After the Chartered Accountant uploads the report, the taxpayer must accept it through the Income Tax Portal for completion of the filing process.

What is the usual tax audit due date?

The normal due date is generally 30 September of the relevant assessment year, subject to extensions, amendments and special cases.

What happens if a tax audit is filed late?

Late or non-compliance may result in consequences under the applicable income tax provisions. The facts, reasonable cause and actual filing status should be reviewed before determining the impact.

Can tax audit and ITR be filed by the same CA?

Tax audit and income tax return services may be coordinated by the same professional, subject to applicable professional requirements and the engagement terms.

Do you provide online tax audit services?

Yes. Books, statements and supporting documents can be shared electronically, and queries can be handled through email, WhatsApp, phone or video meetings.

How much does a tax audit cost in Gurgaon?

Fees depend on turnover, transaction volume, quality of books, number of bank accounts, GST registrations, branches, inventory, reconciliations and complexity of Form 3CD reporting.

How can I contact a Tax Auditor in Gurgaon?

Call or WhatsApp CA Hemant Garg at +91 83688 37889 or email cahemantgarg@gmail.com.

Contact CA Hemant Garg for Tax Audit Services in Gurgaon

A proper tax audit requires complete books, accurate reconciliations, supporting documentation and timely resolution of reporting issues.

CA Hemant Garg provides professional assistance for:

• Section 44AB applicability review
• Books-of-account finalisation
• Financial-statement preparation
• GST and TDS reconciliation
• Form 3CA or Form 3CB
• Form 3CD reporting
• Tax audit report filing
• Income tax computation
• Business and professional ITR filing

For professional Tax Audit Services in Gurgaon or Gurugram, contact:

CA Hemant Garg HGMR & Associates, Chartered Accountants 3rd Floor, Innov8, Orchid Centre, near Sector 54 Chowk Metro Station, Sector 53, Gurugram, Haryana 122011 Call or WhatsApp: +91 83688 37889 Email: cahemantgarg@gmail.com

You focus on your business, we will manage your compliance.

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