Navigating the Tax Audit Maze with help from Expert Assistance

Master tax audits effortlessly with Enterslice. Let our experts guide you to financial compliance and peace of mind. Ready to simplify your journey? Contact us today.

100000 + Happy Customer

100000 +

Happy Customer

50000 + CA & Lawyers

50000 +

CA & Lawyers

50 + Offices

50 +


Rated at 4.9 By 30000 + Customers Globally

Google Reviews

9,500+ Happy Reviews4.8/5 | 9,500+ Happy Reviews


Rated at 4.8 Rated at 4.8/5 9,500+ Happy Reviews

Tax Audit Services Ensuring Compliance and Financial Accuracy

Enterslice provides a service tax auditor to help the company in verification or inspection of books of accounts of the business by an accountant or auditor for the requirement of checking the accounts of all the departments and recording the transactions to ascertain the accuracy of financial statement of the business or the financial transaction of the company comply with the applicable law. Enterslice provides skilled tax auditors to control the process to ensure accuracy and prevent the company from malpractices to ensure an ethical and transparent system for conducting business. Enterslice has an experienced team to assist you in the process from planning to execution and reporting. We provide reliable and efficient tax audit services that are compliant with Section 44AB of the Income Tax Act.

Insight about Tax Audit

Tax audit is important under Section 44AB of the Income Tax Act, 1961, which states that every person carrying on business with total sales or turnover exceeds One Crore Rupees for a business with more than 5% cash transaction and Ten Crore Rupees for businesses with less than 5% cash transactions in the previous year, or carrying on the profession if the gross receipt from the profession exceeds Fifty Lac Rupees for the previous year are liable to get a tax audit done. Taxpayers must get their accounts checked for an income tax audit, which should be presented as a tax audit report for income tax filing by September 30th of every year. Even if the person misses the deadline, a person has to upload the audit report by paying a penalty.

Services Breakdown by Enterslice in Tax Audits

Compliance with Tax Regulation

We ensure that your tax audit complies with the Income Tax Act, 1961 and also with any relevant auditing standards and guidance notes issued by the government authorities to maintain the smooth functioning of your business.

Timely and Accurate Reporting

We understand the importance of timely and accurate reporting by using the latest technology or tools and skilled professionals to conduct audits efficiently and with minimum discrepancies, and we focus on areas that are critical to your business.

Protection from Penalties

The Enterslice team helps you protect your business from any legal consequences or penalties that may arise from non-compliance with tax laws. Our team of Chartered Accountants are up to date with your business's latest tax laws and regulations.

Enterslice Services helps in Mastering Tax Audits

Operational Audits

The operational audit is the service Enterslice provides to assess risks, evaluate internal controls of departments and ensure that the operations are functioning efficiently, effectively, and according to management's intention. The operational audit services by our skilled professionals evaluate the use of resources available to the department.

Financial Audits

Enterslice provides the service of financial audits to develop audit programs to access or evaluate the accounting and finances of transactions and activities of the businesses. This service's main objective is to protect the financial activity of your business, make it accurate as per the books of accounts, and reflect appropriate financial reports.

Advisory and Consulting

Advisory and consulting services include the feature of reviewing existing business processes and strategies and implementing the changes if required to protect the business, and it also includes the evaluation and advice of the policies, procedures, and any management request required of review of some area.

Compliance Audits

Enterslice develops audit programs to access or evaluate the compliance works of the business and promotes a culture that fosters ethical and compliant behaviour with adequate internal controls that avoid violations of laws. This also provides the responsibilities to be communicated to departments timely.

Relevant Provisions of Tax Audits

Section 44AA

This section describes the books of accounts and states the maintenance of books of accounts and other necessary papers as may enable the auditor to compute the business's total income.

Section 44AB

Section 44AB of the Income Tax Act 1961 regulates the tax audits of a business or professional. The tax auditor ensures that the tax paper has provided accurate books of accounts, deductions in taxes, etc.

Section 44AD

Section 44AD is the presumptive transaction that provides relief to some individuals or professionals to exempt them from tax audits. It is not applicable for assesses with professions listed under Section 44AA, which was introduced to ease the tax burden on small taxpayers. Section 44AD covers all types of businesses except those businesses that involve leasing, plying, or renting goods because these particular businesses come under the provision of Section 4AE, so no deduction under Section 44AD can be claimed by the taxpayer. This provision covers all types of business except those which involve leasing, plying or renting of goods.

Section 44BB

Section 44BB contains special provisions for the computation of taxable income of a non-resident individual engaged in the business of providing services or facilities in connection with or supplying plant and machinery or extraction or production of minerals, etc., provides that 10% of the amount paid or received for the provision of such services shall deem to be the taxable income of such non-resident and audit needs to prepare.

Section 44AE

This section states that the small businesses engaged in plying, hiring or leasing goods carriages with not more than ten vehicles which carry goods adopt the presumptive taxation scheme for ascertaining the taxable income for a particular financial year. Under this scheme, eligible businesses can audit their accounts by maintaining regular books of accounts. The individual can avoid maintaining the audit records with a small business.

Benefits of Audit for the Businesses

Legal Actions

The tax audit will save the business from legal action and penalties and also drive the business upwards by sustaining its growth. The tax auditor will review or examine the accounts or transactions to check whether the company is working as per the laws or not. However, the Enterslice team helps you by ensuring that your company complies with the regulations or laws to prevent you from facing legal penalties and action. We regularly check the functioning of your company to prevent fraud and analyze the contracts and agreements to make them comply with the laws.


We provide tax auditors services by performing examinations or investigating the company’s financial transactions or books to prepare the actual report because the Government authorities accept the audit report as true and fair for taxation and help the business to get a loan and license the business, it also ensures the chances of deception and minimizes the tax gap. Our team helps present accurate and fair reports to attract more investors and help your company sustain growth. An accurate tax report will help your company maintain its growth.

Preventive Measure

The tax audit helps to prevent future risks because the auditor identifies possible failures or corrects them. The proper maintenance of books of account and filing of the tax audit report will help the company keep track of financial transactions and have an idea about the profits and losses of the company's financial year. Enterslice helps your company mitigate risk, forecast future risk, and prepare a plan or strategies to safeguard your company's interests in the market. Our experienced professionals forecast future risks through thorough research and analysis.

Tax Presumptive Scheme under Section 44AD, 44ADA, and 44AE

As per the Income Tax Act of 1961, businesses and professionals are an order of relief to small taxpayers from the hectic job of maintaining regular books of accounts and getting them tax audited. If a taxpayer falls under the Presumptive scheme, whether for their business or profession and fulfils the condition met in Section 44AD or 44ADA, then there is no obligation to maintain accounting books for tax audits. Section 44AD of the Income Tax Act states that if any business has a turnover of less than Two Crore, Rupees can opt to be taxed presumptively, and they must declare profits of 8% for non-digital transactions or 6% for digital transactions, whichever is done. Section 44ADA is introduced to help small businesses or professionals with a lesser burden of compliance and designed to give relief to a person whose total gross receipt does not exceed Fifty Lac Rupees and who engaged in a specific profession such as legal, medical, engineering, accountancy, architect, and any other profession as notified by the CBDT. Section 44AE of the Income Tax Act, 1961, states that small businesses engaged in the business can adopt this presumptive scheme for a particular financial year.

necessary papers Required for Tax Audits

Receipts and Payments

All cash receipts and payments are maintained on a day-to-day basis, copies of Bills or receipts,

All cash receipts and payments are maintained on a day-to-day basis, copies of Bills or receipts, Books of Accounts

A journal book of accounts maintained by the accountant and a ledger that would record all the debits and credits.

Expenses and Bills

The original bills or receipts of all the expenditures incurred have to be collected and analyzed by the auditor.

Register and Records

The records of the registration of members, the board of directors, and key personnel, as well as the register of the contracts and arrangements, are required at the time of the secretarial audit.

Financial Statements and reports

The financial statement and annual reports by the shareholders or directors of the company are required at the time of the secretarial audit.

Policies and Procedures

The policies and procedures followed by the companies for corporate governance and the code of conduct made by the company for its functioning are required for the secretarial audit.

Regulatory Filings

The copies of filings made within the regulatory authority and annual returns filed with the companies' registers.


A copy of the forms filled out by the company.

Categorization of Business Tax Payers to Present Tax Audit Report

Businesses do not opt for Presumptive transactions when total sales, turnover, or gross receipt exceeds one crore in the financial year and if cash transactions are above 5% of total gross receipt and the payment threshold limit of the turnover for a tax audit is increased to Ten Crore Rupees. Businesses eligible for Presumptive Taxation under Section 44AE, 44BB or 44BBB claim profits or gains which are less than the prescribed limit under the presumptive taxation scheme. Businesses are not eligible to claim Presumptive Taxation under Section 44AD, which is applicable when the annual income of the taxpayer is more than the maximum amount not chargeable to tax in the following five consecutive assessment years from the tax year. Business declaring profits as per Presumptive Taxation under Section 44AD with gross receipt, turnover or total sales exceeding Two Crore Rupees.

Statutes of Limitation

The statute of limitations in tax audits refers to the specific time limits imposed by tax authorities for initiating an audit or making adjustments to a taxpayer's return. These limitations help provide a sense of finality and legal certainty to both the taxpayer and tax authorities. The statute of limitations in tax audits can vary by jurisdiction and can include time limits for initiating an audit, assessing additional taxes, and addressing cases of fraud or omission. It's important to keep these limitations and time frames in mind when performing a tax audit. However, it's advisable to keep tax records for a longer period than the statute of limitations.

Challenges in Tax Audit

Collecting Data

The tax auditor relies on sufficient and relevant necessary papers to support their findings and conclusions because if the company being audited lacks proper books of accounts, bills or other required Paper works or fails to provide complete records, then it can impede the audit process and make it difficult for the auditor to provide an actual financial status of the company to file for taxation or ITR if eligible. Tax auditing mostly depends upon the data, and it sometimes becomes difficult to collect all the little data because companies often forget to keep track of all the little details.

Time Constraints

The tax auditor has to present an audit report within the mentioned deadlines, especially when financial statements need to be issued, or regulatory requirements must be met because limited time can hinder the process of examination of the audit, collecting or accounting the tax liabilities from the books of account for the financial year. Collecting all the data and communicating with all the employees becomes difficult to conclude in a shorter time. The tax paper needs to comply with the time limits to avoid penalties.

Limited Access to Information

The tax auditors rely on the cooperation or financial books of account of the company which is being audited to access relevant information and data to file taxation. In some cases, companies don't have actual financial transaction records, which can impede the audit process and require auditors to seek alternative sources or methods to obtain necessary evidence. Also, sometimes, the business doesn't keep a record of the expenses or receipts to avoid paying tax, which will attract inaccuracies and legal action against your company.

Key Forms for Submission of a Tax Audit

Form 3CA, Audit Annexure Form

The audit of accounts under Section 44AB in case of a person who carries on business or profession shall file such audit report in Form 3CA, which contains an overview of the taxpayer's personal information such as the date of the audit report, balance sheets, audit observation, and PAN card of the individual.

Form 3CB

This form is required to be furnished by taxpayers to carry out business or professional activities for whom tax auditing is not mandatory, and this form contains a detailed overview of the tax auditing.

Form 3CD

This form is a detailed statement of the particulars where all the details related to business and transactions, such as revenue, assets liability, turnover, profits and so on, are furnished by the taxpayer.

Form 3CE

This form is required to be furnished along with an annexure of the particulars by foreign companies and non-residents that receive a royalty for technical services and are mandated to get their books of account audited.

Goals of Performing Tax Audit

Check Financial Transactions

The tax audit is conducted to achieve the objective of ensuring proper maintenance and correctness of books of accounts and certification of the same by the tax auditors to maintain the legality of the business.


The tax audits are conducted to observe the discrepancies after investigations or examinations of the books of accounts and report prescribed information such as tax depreciations and compliance with various provisions of income tax laws.


It is done to enable the tax authorities to verify the validity or accuracy of the income tax returns filed by the taxpayer's calculation and verification of total income and claim for deduction in income tax returns. All these things will become easy.


Tax audit keeps track of the activities to ensure that no frauds or malpractices are performed in filing the income tax returns so our team will make the right decision for improving your business.

Closure of Tax Audit

The tax audit closure is the final phase of a tax audit, in which the tax authority finalizes its examination of the taxpayer's financial records and tax return. This essential stage involves several key processes and outcomes, such as a thorough review of the taxpayer's financial necessary papers and tax return; the auditor compiles their findings, investigations and adjustments in an audit report. This final report figures out any discrepancies or issues identified during the audit, such as underreported income and accurately claimed deduction, and specifies the proposed changes. The tax authority provides the taxpayer with an audit report along with the formal notice of the proposed adjustments. The appeal process may extend beyond the initial audit closure, signifying the conclusion of the audit process.

Categorization of Professionals Tax Payers to Present Tax Audit Report

The categorization of professional taxpayer under presumptive schemes states that the gross receipt should be more than fifty crore rupees for professionals, and the professional who is eligible for Presumptive Taxation under section 44ADA can claim profits that are less than the prescribed limit and income is more than the maximum amount chargeable to tax.

Various types of Tax Audits

Correspondence Audit

The audit is conducted by the IRS to review the tax returns and is normally aimed at charities and other non-profits, where the IRS will interact through mail or phone to request clarification.

Office Audit

The office audit is an examination or investigation of a taxpayer’s records by the IRS from its offices to ensure compliance with tax laws. This only covers a few specific issues identified in a written notice which asks for a review.

Field Audit

A field audit means the audits done by the IRD through visiting the taxpayer at their home or office premises to examine or investigate the records. When the IRS visits the office, they can investigate all the records, such as records outside the business, to ensure fairness in the books of accounts.

Process of filing Tax Audit Report

The procedure for filing the Tax Audit Report are

  • The accountant assigned to conduct a tax audit of the business or individual presents the tax audit report by logging in to their portals by filling in their credentials,
  • The taxpayer mentions the relevant information of their CA in their login platform,
  • Once the accountant submits the tax audit report, the taxpayer can reject or accept the report before furnishing it to the tax authorities,
  • If accepted, then CA will upload the tax audit report.

Penalty for not filing the Income Tax Audit Reports

The penalties are stated under Section 271B of the Income Tax Act, 1961, imposed in case of non-compliance to the income tax auditing regulations and not furnishing the tax audits forms a minimum penalty of 0.5% of total sales, turnover, or gross receipts which can further be raised to Rupees 1,50,000 whichever is lower. No penalty will be imposed if the taxpayers provide a relevant reason for not imposing the audit forms on time, such as defined under section 273B, such as the death or physical incompetence of the tax paper, delay caused due to labour issues, theft or loss on fire etc. and natural disaster.

Digital Transformation Advisory

Enterslice ensures that the taxpayer will provide complete and accurate information regarding their business or professional incomes, deductions, and taxes. The business has to maintain the proper books of accounts such as ledger, journal, balance sheets, receipts or bills, etc., to be audited by the accountant and our experts will guide on implementing to maintain all the books of account, keep data on a daily basis transactions, give financial advice to the business or professionals, report discrepancies, investigate any fraudulent transactions etc., to protect the business or professionals from tax evasion and for timely.

Difference between Tax Audit and Statutory Audit

Tax Audit
  • The tax Audit ensures the reliability and accuracy of the information in the taxpayers tax return.
  • Examination of tax-related matters of the company.
  • Governed by the Income Tax Act of 1961.
  • It investigates only tax income-related matters.
  • It is useful for government agencies to maintain the tax liability.
Statutory Audit
  • A Statutory Audit ensures the accuracy and reliability of a taxpayers financial record.
  • Examination of Books of Accounts to ensure accuracy in financial reports.
  • Governed by the Companies Act, 2013
  • It investigates entire financial matters.
  • It is useful for Shareholders to know the financial condition of the company.

Related Services

Our Awards Our Awards

Top 100 Companies in Asia - Red Herring
Top 100 Companies in Asia - Red Herring

Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten,, Xiaomi and YouTube would change the way we live and work.

Top 25 in India - Consultants Review

Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.

Top 25 in India - Consultants Review

We partner with more than 100+ companies

-- Testimonials

Don't take our word for it

In the news