A comprehensive guide to tax audit (TAR) under Section 44AB, covering turnover limits, presumptive schemes, due dates, and penalties for FY 2024-25.
Saloni Kumari | Sep 16, 2025 |
TAR Deadline for FY 2024-25 Nears: Know Turnover Limits, Due Dates, and Penalties
The general meaning of ‘audit’ is to check, inspect, review, etc. In financial terms, a tax audit is an analysis or review of the books of accounts of any business or profession carried out by taxpayers. Taxpayers are required to get accounts of their business/profession audited with the Income Tax Department, under Section 44AB of the Income Tax Act. This is done by a chartered accountant (CA).
When accounts of such taxpayers are audited by a chartered accountant seeking the requirements of Section 44AB under the Income Tax Law, it is called a tax audit. In such a case, the chartered accountant performing the tax audit is required to give an audit report including his findings, observations, etc. This report needs to be given by CA in Form Nos. 3CA/3CB and 3CD.
The types of audits vary according to different types of laws, like a company audit being required for company law, a cost audit being required for cost accounting law, etc.
When the following turnover limits are exceeded, filing a Tax Audit Report (TAR) becomes compulsory:
The deadline for filing the Tax Audit Report (TAR) for the financial year 2024-25 (assessment year 2025-26) is September 30, 2025. In the case of the transfer pricing audit, the due date is October 31, 2025. TAR is filed electronically at the Income Tax Portal by a chartered accountant. After the CA submits the report at the portal, the desired taxpayer is required to approve this report from his/her registered e-filing account with the Income Tax Department at https://www.incometax.gov.in/iec/foportal.
When a taxpayer is liable to get their business/profession accounts audited with the Income Tax Department but still does not file a Tax Audit Report (TAR) before the set due date, then the following penalty amounts may be imposed:
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