Description:
Discover a complete corporate guide to preparing for statutory audit and tax audit before 30th September 2025. Includes audit checklists, compliance tips, FAQs, and consequences of missing deadlines.
🏢 Why September is Critical for Corporates
For corporates in India, September is audit crunch time. With the 30th September deadline for statutory audit reporting and tax audit filing (Form 3CA/3CB & 3CD), CFOs and finance teams face mounting pressure.
Timely preparation ensures:
✔ Accurate financial reporting
✔ Investor and lender confidence
✔ Reduced risk of tax scrutiny
✔ Avoidance of penalties
🔹 Statutory Audit vs Tax Audit – Key Differences
| Aspect | Statutory Audit | Tax Audit |
| Law Applicable | Companies Act, 2013 | Income Tax Act, 1961 |
| Objective | Ensure financial statements show a true & fair view | Verify compliance with tax laws & reporting requirements |
| Applicability | All companies | Businesses > ₹10 crore turnover in case of 95% transactions in Banking mode(or ₹2 crore under presumptive scheme) |
| Audit Report | Auditor’s Report under Companies Act (CARO + FS) | Form 3CA/3CB & 3CD |
📑 Preparing for Statutory Audit – Checklist for Corporates
✅ Finalize Books of Accounts – Complete ledgers, trial balance, and adjustments.
✅ Compliance Review – GST, TDS, PF, ESI, ROC filings, director disclosures.
✅ Supporting Documents – Contracts, invoices, resolutions, loan papers.
✅ Fixed Assets & Inventory Verification – Update registers, conduct physical checks.
✅ Corporate Governance – Ensure board meeting minutes, committee compliance, statutory registers are updated.
📑 Preparing for Tax Audit – Checklist for Corporates
✅ Form 3CA/3CB & 3CD Data – Depreciation, TDS compliance, related party transactions.
✅ Reconciliations – GST vs books, TDS vs Form 26AS, Income Tax vs books.
✅ Deductions & Disallowances –
- Sec 40(a)(ia): TDS defaults
- Sec 40A(3): Cash payments > ₹10,000
- CSR expense disclosures
✅ Transfer Pricing – Form 3CEB and TP study report for international dealings.
✅ Advance Tax & MAT/AMT – Verify payments, interest, and applicability.
⚠️ What If You Miss the Audit Deadline?
- Penalty u/s 271B (Tax Audit): 0.5% of turnover (max ₹1,50,000)
- Late ITR Filing: Loss of carry-forward, interest & penalties
- ROC Non-Compliance: Additional fees, possible director disqualification
- Reputation Risk: Weak governance perception among investors & banks
✅ Best Practices for Corporates
✔ Start audit readiness 2-3 months early
✔ Conduct an internal pre-audit review
✔ Use ERP/automation tools for reconciliations
✔ Hold CFO–Auditor meetings before finalization
✔ Seek professional CA guidance for representation & planning
❓ FAQs
Q1. Is tax audit applicable to LLPs?
Yes, LLPs exceeding prescribed turnover limits must undergo tax audit.
Q2. Can statutory audit & tax audit be handled by different auditors?
Yes, but corporates often prefer the same CA firm for efficiency.
Q3. What is the due date for tax audit filing in 2025?
30th September 2025 (unless CBDT extends the deadline).
Q4. What happens if GST mismatches are found?
Discrepancies may trigger GST notices, ITC reversals, or adjustments in tax computation.
📌 Conclusion
The Statutory Audit and Tax Audit season is not just about compliance—it’s a corporate governance opportunity. By preparing early, reconciling diligently, and working with professionals, corporates can ensure timely filing, avoid penalties, and strengthen financial credibility.
📞 Need Expert Assistance?
Our CA firm provides end-to-end corporate audit support including:
- Books of accounts finalization
- Statutory & Tax Audit compliance
- GST/TDS reconciliations
- Audit representation before authorities
👉 Get in touch with us today to prepare your company for the 30th September deadline with complete confidence.
