12 Oct 2026Audit and assurance give lenders, investors and regulators confidence that a company’s financial statements are true and fair. In India a business may face several distinct audits — statutory audit under the Companies Act, tax audit under the Income-tax Act, and specialised stock, bank and internal audits.
Types of audit in India
- Statutory audit — mandatory for every company under the Companies Act, 2013, irrespective of turnover or profit, and conducted by an independent Chartered Accountant.
- Tax audit (Section 44AB) — required when turnover or gross receipts cross the prescribed limits below.
- Stock / inventory audit — physical verification and valuation of inventory, often required by lenders or for year-end assurance.
- Bank audit — concurrent, statutory and revenue audits of bank branches.
- Internal audit — ongoing review of internal controls, risk and compliance.
Tax audit limits for AY 2026-27 (Section 44AB)
- Business: turnover above ₹1 crore — or ₹10 crore where cash receipts and cash payments are each 5% or less of the total.
- Profession: gross receipts above ₹50 lakh (the ₹10 crore cash relaxation does not apply to professionals).
- Report due date: 30 September 2026; penalty under Section 271B is 0.5% of turnover, capped at ₹1,50,000.
For a detailed walkthrough of the turnover thresholds and due dates, see our complete Section 44AB tax audit guide.
Why audit & assurance matters
A clean, independent audit builds credibility with banks, investors and regulators, surfaces errors and fraud early, strengthens internal controls, and keeps the company compliant with the Companies Act and the Income-tax Act. For growing businesses it is also the foundation for fundraising, lending and eventual listing.
Need a statutory, tax or stock audit?
Regi Tom Antony & Associates, Chartered Accountants in Kochi, provides independent audit & assurance services across Kerala and India. Contact us to discuss your audit requirements.
Frequently asked questions
Is statutory audit mandatory for all companies in India?
Yes. Every company registered under the Companies Act, 2013 must have its accounts audited by a Chartered Accountant, regardless of turnover or profit.
When is a tax audit required in 2026?
When business turnover exceeds ₹1 crore (or ₹10 crore where cash dealings are within 5%), or professional receipts exceed ₹50 lakh.
What is the penalty for not getting a tax audit?
Under Section 271B, 0.5% of turnover or gross receipts, subject to a maximum of ₹1,50,000, unless reasonable cause is shown.