Audit report and statement
Form 26 from tax year 2026-27, or Form 3CA/3CB with Form 3CD for FY 2025-26, prepared clause by clause and signed with UDIN.
Tax Audit Services in Kochi, Kerala – Section 63 / 44AB
T K Chandy & Associates carries out tax audits in Kochi for businesses, professionals, firms and companies whose turnover or receipts cross the income tax limits. We audit under section 63 of the Income-tax Act, 2025 (section 44AB for FY 2025-26), prepare Form 26 or Forms 3CA/3CB with 3CD, and upload the report before the due date so your return can be filed on time.
- Led by a chartered accountant since 1994
- Member of SGA World International
- Kakkanad, Kochi
At a glance
Tax audit at a glance
- Who needs it: Businesses with turnover above ₹1 crore (₹10 crore if cash receipts and payments are each within 5%), professionals above ₹50 lakh, and some presumptive taxation cases.
- Which law: Section 63 of the Income-tax Act, 2025 with Form 26 from tax year 2026-27; FY 2025-26 audits stay under section 44AB with Forms 3CA/3CB and 3CD.
- Key dates: For AY 2026-27 the report was due 21 October 2026 and the return is due 21 November 2026, after the CBDT extension.
- Our role: Books reviewed, clauses reported, figures reconciled with GST and TDS, and the report uploaded so you can file your return on time.
A tax audit is an audit of a taxpayer's books of account by a chartered accountant, required by the Income-tax Act once turnover or receipts cross a limit. The auditor reports whether the accounts are properly kept and gives detailed particulars that the tax department uses: depreciation, disallowances, TDS compliance, loans and deposits taken in cash, GST turnover, related-party payments and more.
From 1 April 2026, the Income-tax Act, 2025 replaced the 1961 Act. The tax audit provision moved from section 44AB to section 63, and the report is in Form 26 from tax year 2026-27. Audits of financial year 2025-26 (assessment year 2026-27) are still done under section 44AB in Forms 3CA/3CB and 3CD.
At T K Chandy & Associates in Kakkanad, we carry out tax audits for traders, manufacturers, contractors, doctors, consultants, partnership firms, LLPs and companies across Kochi and Kerala. Where you also need a statutory audit, we plan both together so the numbers agree.
Tax audit services
Who Needs a Tax Audit in Kerala?
Any person carrying on business or profession can be covered: individuals, HUFs, firms, LLPs, companies, co-operative societies and trusts with business income. We act for:
- Traders, distributors and retailers above the turnover limit
- Manufacturers and contractors, including government contractors
- Doctors, consultants, architects and other professionals above ₹50 lakh receipts
- Partnership firms and LLPs, with partners' returns filed on time
- Companies, alongside their statutory audit
- Small businesses on presumptive taxation that declare lower profits
What the engagement covers
What Does Our Tax Audit Service Include?
Online filing
Upload of the report on the income tax e-filing portal and guidance to you on accepting it, so the return can follow.
Depreciation and disallowances
Depreciation as per the Act, and checks for disallowances such as unpaid statutory dues, cash payments above limits and late MSME payments.
TDS and TCS review
Checks on whether tax was deducted and deposited correctly and on time, and whether returns were filed, as the report requires.
GST reconciliation
Turnover and expenses in the books reconciled with GST returns, so the figures reported do not trigger notices.
Tax computation and return
Income computation and the income tax return prepared from the audited figures, if you want us to file it.
Tax audit limits
When Is a Tax Audit Required?
The limits are the same under section 44AB (FY 2025-26) and section 63 (tax year 2026-27 onwards):
| Situation | Turnover or receipts | Tax audit needed? |
|---|---|---|
| Business, normal case | Above ₹1 crore | Yes |
| Business with cash receipts and cash payments each up to 5% of the total | Above ₹10 crore | Yes |
| Business with cash receipts and cash payments each up to 5% | ₹1 crore to ₹10 crore | No |
| Profession | Gross receipts above ₹50 lakh | Yes |
| Presumptive business or profession declaring lower profit than the presumptive rate, with income above the basic exemption limit | Any | Yes |
| Presumptive business declaring at least the presumptive profit, within the presumptive limits | Any | No |
Under the 1961 Act the presumptive schemes are sections 44AD, 44ADA and 44AE; under the 2025 Act they are combined in section 58. Under section 44AD, a business that opts out within five years of opting in can also need an audit. Receipts by cheque or draft that is not account-payee count as cash for the 5% test.
Our process
How Does a Tax Audit Work With Us?
Step01
Check applicability and engage
We confirm whether you need a tax audit and which form applies, check our ICAI tax audit limit and agree scope, timetable and fee in writing.
Step02
Review books and records
We review the books, test key transactions and confirm that accounts are properly maintained and closed for the year.
Step03
Clause-by-clause reporting
We gather the particulars for every clause, including depreciation, TDS, loans, cash transactions, GST and related parties.
Step04
Discuss and finalise
We discuss disallowances and observations with you before the report is finalised, so nothing in it surprises you.
Step05
Upload and file the return
We sign with UDIN and upload the report; you accept it on the portal and the return is filed using the same figures.
Due dates
What Are the Tax Audit Due Dates for 2026?
For financial year 2025-26 (assessment year 2026-27):
Tax audit report (Forms 3CA/3CB and 3CD)
- Original due date
- 30 September 2026
- Extended due date
- 21 October 2026
Income tax return for audit cases
- Original due date
- 31 October 2026
- Extended due date
- 21 November 2026
Return for transfer pricing cases
- Original due date
- 30 November 2026
- Extended due date
- Not covered by this extension
Revised return
- Original due date
- 31 March 2027
- Extended due date
- Fee applies if revised after 31 December 2026
The extensions were announced by CBDT in a press release dated 28 September 2026. Under the 2025 Act, the tax audit report is due one month before the return due date. If a report is still pending, contact us as soon as possible.
Be audit-ready
What Documents Are Needed for a Tax Audit?
Keep these ready to avoid last-minute delays before the due date:
- Trial balance, ledgers and day books
- Bank statements for all accounts
- Fixed asset additions with bills and dates
- Stock records and valuation method
- GST returns (GSTR-1, GSTR-3B) and GSTR-9
- TDS and TCS returns and challans
- Loan and deposit ledgers with PAN of parties
- Details of cash payments and receipts
- MSME supplier list and payment dates
- Related-party transactions
- Previous year's tax audit report and return
- Partnership deed or company documents
Worked example
Example: Tax Audit for a Kochi Hardware Trader
A proprietor running a hardware and electrical shop in Aluva had turnover of ₹3.6 crore for FY 2025-26. About 12% of his sales were in cash, so the ₹10 crore limit did not apply and he needed a tax audit under section 44AB.
- We found that TDS on rent for the shop had been deducted but deposited late, which had to be reported with the interest paid.
- Bills from two suppliers registered as micro enterprises were still unpaid at year end beyond the 45-day limit, so they were disallowed for the year under section 43B(h).
- The turnover in the books was ₹4 lakh lower than in the GST returns because of a sales return booked twice, which we corrected before finalising.
The tax audit report was uploaded before the extended due date, the return was filed with the corrected figures, and the books, GST returns and tax audit report all agreed.
Fees and timing
How Much Does a Tax Audit Cost in Kochi?
The fee depends on turnover and number of transactions, whether the books are complete and closed, the number of bank accounts and GST registrations, inventory, the TDS and GST reconciliation work needed, and whether you also want us to prepare the return. We quote a fixed fee in writing after a quick look at your trial balance.
Plan the audit from July or August. Every chartered accountant in India works towards the same deadline, and late starts mean rushed reporting and a risk of missing the due date.
Late filing
What Happens If the Tax Audit Is Late?
- FY 2025-26 audit not done or report not filed in time (1961 Act)
- Penalty under section 271B of 0.5% of turnover or gross receipts, up to ₹1.5 lakh, unless there is reasonable cause
- Tax year 2026-27 onwards (2025 Act)
- Fixed fee proposed in the Finance Bill 2026: ₹75,000 for delay up to one month and ₹1.5 lakh for a longer delay
- Return filed after the due date
- Late filing fee, interest on tax due, and loss of the right to carry forward certain losses
- Audit report with errors
- Defective return notices and the extra work of correcting and refiling
Why T K Chandy & Associates
Why Choose Us for Your Tax Audit in Kochi?
CA-led since 1994
Led by T K Chandy Vaidyan, a chartered accountant since 1994, with experienced chartered accountants on every report.
Planned ahead of the rush
We schedule audits from mid-year and track each client against the due dates, so reports are not rushed.
GST, TDS and audit joined up
One team reconciles your books with GST and TDS records, so the report and return tell the same story.
Ready for Form 26
We are already preparing clients for the new Form 26 under the Income-tax Act, 2025.
In Kakkanad, Kochi
Easy to meet, with on-site work across Ernakulam and Kerala when your books are kept at the business.
Confidential and independent
ICAI ethics, UDIN on every report and secure handling of your financial data.
Related services
Which Other Services Support Your Tax Audit?
Statutory audit
Company and LLP audits under the Companies Act, 2013, planned alongside the tax audit.
Financial (annual) audit
Audited accounts for firms and proprietors needing them for banks or tenders.
Income tax filing & planning
Returns, advance tax and planning for businesses and individuals.
Corporate tax
Tax computation, MAT and returns for companies.
TDS compliance
TDS deduction, returns and corrections that the tax audit report checks.
GST services
GST returns, reconciliations and the GSTR-9 annual return.
Get a quote
Request a tax audit quote
Send us your business type, turnover for the year and how far your books are closed. We will confirm whether a tax audit applies and quote a fixed fee.
Prefer to talk now? Call +91 484 354 1530 or email [email protected].
Who prepared this page
Written and reviewed by chartered accountants at T K Chandy & Associates
This page is prepared by the audit and tax team at our Kakkanad, Kochi office and checked against the Companies Act, the Income-tax Act, GST law and ICAI standards. It is reviewed whenever the rules change.
- Last reviewed 29 October 2026
- Led by T K Chandy Vaidyan, chartered accountant since 1994
- Member of SGA World International
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Ask an expertFrequently asked questions
Tax audit in Kochi – frequently asked questions
Short answers to the questions clients in Kochi ask us most. Still unsure?
Talk to our team01.What is the tax audit limit for FY 2025-26?
A business needs a tax audit if turnover exceeds ₹1 crore, or ₹10 crore where cash receipts and cash payments are each within 5% of the total. A professional needs one if gross receipts exceed ₹50 lakh. These limits continue under section 63 of the Income-tax Act, 2025.
02.What is section 63 of the Income-tax Act, 2025?
Section 63 is the tax audit provision of the new Act that replaced section 44AB from 1 April 2026. It requires businesses and professionals above the limits, and some presumptive taxation cases, to get their accounts audited by a chartered accountant.
03.What is Form 26?
Form 26 is the tax audit report under section 63 of the Income-tax Act, 2025, used from tax year 2026-27. It combines the roles of Forms 3CA, 3CB and 3CD. Audits of FY 2025-26 still use the old forms.
04.What is the difference between Form 3CA and Form 3CB?
Form 3CA is used when the accounts are already audited under another law, such as a company under the Companies Act. Form 3CB is used when no other law requires an audit, such as a proprietor or partnership firm. Both are filed with the statement of particulars in Form 3CD.
05.What is the due date for the tax audit report for AY 2026-27?
CBDT extended it from 30 September 2026 to 21 October 2026, and the return due date for audit cases from 31 October 2026 to 21 November 2026, by a press release dated 28 September 2026.
06.Do I need a tax audit if I opt for presumptive taxation?
Not if you declare at least the presumptive profit and stay within the scheme's limits. If you declare lower profit and your income is above the basic exemption limit, you need to keep books and get them audited.
07.Is a tax audit needed if my business made a loss?
A loss on its own does not trigger an audit. What matters is turnover, or for presumptive taxpayers whether they declare lower profits with income above the exemption limit. Getting an audit when needed also protects your right to carry forward the loss.
08.How is turnover calculated for the tax audit limit?
Turnover is the total sales or gross receipts of the business for the year. For the 5% cash test, cash receipts include cheques and drafts that are not account-payee, and cash payments are compared with total payments.
09.What is the penalty for not getting a tax audit done?
For FY 2025-26, the penalty under section 271B of the 1961 Act is 0.5% of turnover, up to ₹1.5 lakh, unless there is reasonable cause. For tax year 2026-27 onwards, the Finance Bill 2026 proposed replacing the penalty with a fixed fee of ₹75,000 for delay up to one month and ₹1.5 lakh after that.
10.Can a tax audit report be revised?
A tax audit report can be revised in limited cases, such as a change in law or a retrospective payment, and the revised report should explain the reasons. It is not a way to correct careless errors, so accuracy the first time matters.
11.How many tax audits can a chartered accountant sign?
ICAI limits each chartered accountant in practice to 60 tax audits a year. Under its 2025 guidelines, this is an overall limit for each member across all firms where he or she is a partner.
12.Does a partner's return depend on the firm's tax audit?
In practice yes. A working partner's remuneration and interest come from the firm's audited accounts, so the partner's return is usually filed after the firm's audit is complete and has the same due date.
13.Do salaried people or investors need a tax audit?
No. Tax audit applies only to income from business or profession. Large share trading turnover, such as futures and options, can be business income, and then the turnover test applies.
14.Is tax audit the same as statutory audit?
No. A statutory audit under the Companies Act gives an opinion on the financial statements. A tax audit reports specific tax particulars. A company above the limit needs both, and the tax audit uses the statutory-audited accounts.
15.Can a cost accountant do a tax audit?
No. A tax audit must be done by a chartered accountant in practice.
References:Income Tax Department · Income tax e-filing portal · Press Information Bureau – CBDT press releases · ICAI – limit on number of tax audits · ICAI – UDIN — reviewed 29 October 2026