Fact-check notes
Last fact-checked: 2026-05-30
Tax caution: AY 2026-27 covers FY 2025-26 and continues under the Income-tax Act, 1961. Tax Year 2026-27 and new-form references should be verified against official utilities before filing.
Research note: This page uses the supplied Batch 14 brief for forward-looking 2026 topics. Treat future-dated claims as planning notes until official notifications/utilities confirm them.
Use this page as preparation guidance. A professional should verify the active law year, notification, portal utility and source records before filing or taking a tax position.
What this covers
Section 63 is treated in the supplied brief as the new Act tax audit trigger. Businesses should verify thresholds, digital receipt evidence and form utility before filing.
- Business/professional thresholds should be tested using books, GST and bank evidence.
- Presumptive cases declaring lower profit need extra audit care.
- The supplied brief links Section 63 audit work with Form 26 reporting.
- Capacity planning matters during peak audit season.
Who this is for
- Business approaching audit threshold.
- Professional with high receipts.
- Presumptive taxpayer below deemed profit.
- CA firm planning audit capacity.
Documents and data to verify
- Turnover and receipts workings.
- Digital payment ratio evidence.
- GST returns and books.
- Prior year audit reports.
Common mistakes to avoid
- Ignoring digital threshold conditions.
- No 44AD/44ADA lower-profit audit review.
- Treating statutory audit as automatic tax audit completion.
- Weak books-GST-bank reconciliation.
How to proceed
- Confirm the applicable financial year, assessment year, taxpayer type, state and portal status before acting.
- Reconcile portal data with books, AIS/Form 26AS, GST returns, contracts, invoices, bank statements and source documents.
- Prepare a written computation, checklist, filing note or response with assumptions clearly stated.
- Download acknowledgements, challans, workings and evidence after filing or submission.
FAQs
Can WorkIndex help with this?
Yes. Post the facts and documents; relevant experts can quote for filing, advisory, reconciliation, registration, appeal support or ongoing compliance.
Is this page final legal advice?
No. Use it to prepare. A professional should verify the active law year, notification, portal utility and records before filing or taking a tax position.
What should I mention while posting?
Mention the year, state, form, deadline, amount involved, documents available, portal status and whether you need filing, correction, advisory or representation.
Frequently Asked Questions
1. What are the audit and accounting requirements for businesses dealing with Section 63 Tax Audit Under New Income Tax Act?
Businesses involving Section 63 Tax Audit Under New Income Tax Act must maintain proper books of accounts under Section 44AA. A tax audit under Section 44AB is mandatory if turnover exceeds ₹1 crore (or ₹10 crore for digital operations).
2. Why is a UDIN mandatory for CA certifications related to Section 63 Tax Audit Under New Income Tax Act?
All CA-certified financial statements, net worth certificates, or audit reports for Section 63 Tax Audit Under New Income Tax Act must carry a Unique Document Identification Number (UDIN) generated on the ICAI portal to be legally valid.
3. What is the due date for submitting the Tax Audit report?
The due date to file the tax audit report on the income tax portal is September 30 of the Assessment Year (one month prior to the ITR filing due date of October 31 for audited cases).
4. What is the penalty for not getting books of accounts audited?
Under Section 271B, failure to get books audited u/s 44AB attracts a penalty of 0.5% of the total sales, turnover, or gross receipts, subject to a maximum cap of ₹1.5 lakh (₹150,000).
5. What is UDIN and why is it mandatory for CAs?
UDIN (Unique Document Identification Number) is a unique 18-digit number generated by Chartered Accountants on the ICAI portal for every certificate, audit report, and document they sign, to prevent forgery and verify CA credentials.
6. What happens if a CA fails to generate a UDIN?
Documents signed by a CA without a UDIN are treated as invalid. If not generated within the 60-day window, the CA can face disciplinary action from the ICAI for professional misconduct.
7. What is a Statutory Audit under the Companies Act, 2013?
A statutory audit is a mandatory review of a company's financial records to verify they present a true and fair view. It is compulsory for all companies (Private Limited, Public, OPC) regardless of turnover or capital.
8. What is a Secretarial Audit under Section 204?
A secretarial audit is an audit of compliance with corporate, securities, and labor laws, conducted by a practicing Company Secretary (CS) who submits Form MR-3. It is mandatory for listed and large public/borrowing unlisted companies.
9. What are the thresholds for a mandatory Secretarial Audit?
Secretarial audit is mandatory for: (1) Listed companies. (2) Public companies with paid-up capital >= ₹50 crore or turnover >= ₹250 crore. (3) Any company with outstanding bank/public financial institution loans >= ₹100 crore.
10. What is CARO (Companies Auditor's Report Order)?
CARO is a set of compliance items that statutory auditors of companies must report on, covering areas like fixed assets, inventory verification, loans to related parties, statutory dues, and internal control structures.
11. Are LLPs required to undergo audits?
Under the LLP Act, 2008, an LLP must get its accounts audited if its annual turnover exceeds ₹40 lakh or if its partner contributions exceed ₹25 lakh.
12. What is an Internal Audit? Who is required to appoint an internal auditor?
An internal audit evaluates a company's risk management and internal controls. Under Section 138 of the Companies Act, listed companies and unlisted public/private companies crossing specific turnover or debt thresholds must appoint an internal auditor.
13. What is the difference between Form 3CA and Form 3CB?
Form 3CA is the audit report used when the business is already required to get its accounts audited under another law (like the Companies Act). Form 3CB is used when the audit is required solely under the Income Tax Act.
14. What is Form 3CD?
Form 3CD is a detailed statement of particulars containing 44 clauses that the tax auditor must complete, detailing business income, expenses, depreciation, MSME dues, TDS compliance, and tax adjustments.
15. Can a tax audit report be revised after uploading?
Yes, a tax audit report can be revised if there are changes in the accounts (like corporate restructuring) or adjustments due to subsequent notifications, certified by the same CA with a fresh UDIN.