{"id":8272,"count":1,"description":"Talk to our Expert Team \u2013 Call +91 72999 72500<\/strong><\/span>\r\n

Many Private Limited Companies in India need to follow tax audit<\/a> rules under the Income Tax Act, depending on their turnover and nature of business. The tax audit ensures the company\u2019s financial records and accounts are accurate, and helps prevent any discrepancies in tax reporting. It is an important compliance step for corporate governance.<\/p>\r\n

Under the Income Tax Act<\/a>, a tax audit becomes mandatory for a Private Limited Company if its total sales, turnover, or gross receipts exceed \u20b91 crore in a financial year. For businesses carrying out digital transactions, the threshold for tax audit applicability is \u20b910 crore, provided 95% of receipts are digital. The tax audit must be conducted by a Chartered Accountant and filed before the due date of the Income Tax Return, usually September 30th of the assessment year.<\/p>\r\n

For example, if a Private Limited Company in Chennai has a turnover of \u20b91.2 crore in FY 2024\u201325, it must get its accounts audited by a CA under Section 44AB of the Income Tax Act. Similarly, a tech-based Pvt Ltd company with \u20b99 crore in mostly digital sales is below the 10 crore threshold, so a tax audit is not mandatory. FilingPoint.com can guide businesses in determining audit applicability and help coordinate with professional CAs to ensure compliance.<\/p>\r\n

Checklist for Tax Audit Applicability:<\/strong>
\u2022 Verify total turnover or gross receipts for the financial year
\u2022 Check if 95% of transactions are digital (for businesses under \u20b910 crore)
\u2022 Engage a Chartered Accountant qualified to perform tax audits
\u2022 Prepare audited financial statements and required schedules
\u2022 Submit Form 3CA\/3CB and 3CD with Income Tax Return by the due date<\/p>\r\n

\u2753 Is tax audit mandatory for all Pvt Ltd companies?
\ud83d\udc49 No, it applies only if turnover exceeds \u20b91 crore or digital receipts rules apply.<\/p>\r\n

\u2753 Who can conduct the tax audit?
\ud83d\udc49 Only a Chartered Accountant is authorized to perform the audit under the Income Tax Act.<\/p>\r\n

Talk to our Expert Team \u2013 Call +91 72999 72500<\/strong><\/span>\r\nWant help determining if your Private Limited Company needs a tax audit? FilingPoint.com<\/a> offers expert guidance + Free Checklist to ensure smooth compliance. Contact us today to get started.<\/p>","link":"https:\/\/filingpoint.com\/consultants\/india\/is-tax-audit-under-the-income-tax-act-mandatory-for-private-limited-companies-and-when-does-it-apply\/","name":"Is tax audit under the Income tax Act mandatory for Private Limited Companies and when does it apply?","slug":"is-tax-audit-under-the-income-tax-act-mandatory-for-private-limited-companies-and-when-does-it-apply","taxonomy":"post_tag","meta":[],"yoast_head":"\nIs tax audit under the Income tax Act mandatory for Private Limited Companies and when does it apply? - Best Company Registration | Tax Filing Services in Chennai, India<\/title>\n<meta name=\"description\" content=\"Call Filing Point 72999-72500. 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