Looking for expert help with tax audit fees by CA, tax audit charges India 2026, CA fees for tax audit, tax audit cost Section 44AB, CA for tax audit Hyderabad? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant. End-to-end filings, notices, and deadline tracking, all in one place.
How much does a tax audit cost in 2026?
Tax audit fees are not regulated. ICAI's recommended scale is not binding. Indicative market ranges for FY 2025-26 are roughly Rs 10,000 to Rs 25,000 for small presumptive-scheme audits, Rs 25,000 to Rs 60,000 for Rs 1 crore to Rs 5 crore turnover, and Rs 50,000 to Rs 1,20,000 for Rs 5 crore to Rs 10 crore. Messy books, many bank accounts, inventory and cash-heavy operations push the fee higher. The report is due 30 September 2026, and skipping the audit risks a Section 271B penalty of up to Rs 1,50,000.
Source: Income-tax Act, 1961, Sections 44AB, 194J, 271B and 273B
The tax audit report for FY 2025-26 (AY 2026-27) is due on 30 September 2026, and the ITR for audit cases on 31 October 2026. If you are still looking for a Chartered Accountant, you are shopping at the busiest point of the year, when good auditors are close to capacity.
This guide covers what tax audits actually cost, what moves your fee up or down, the extras that are billed separately, and the documents to hand over so the audit starts on day one.
Do You Need a Tax Audit?
Tax audit under Section 44AB of the Income-tax Act, 1961 applies for FY 2025-26 if:
| Category | Audit Required When |
|---|---|
| Business | Turnover above Rs 1 crore |
| Business with cash receipts and cash payments each within 5% of the total | Turnover above Rs 10 crore |
| Profession | Gross receipts above Rs 50 lakh |
| Section 44AD business | Profit declared below the presumptive rate and income above the basic exemption limit |
| Section 44ADA profession | Profit declared below 50% and income above the basic exemption limit |
Professionals on Section 44ADA with receipts up to Rs 75 lakh (cash receipts within 5%) who declare at least 50% profit are commonly treated as outside audit. Confirm your position with your CA. For worked examples of the 5% cash test, see our Section 44AB thresholds guide.
The report is filed in Form 3CA (if your accounts are already audited under another law, such as the Companies Act) or Form 3CB (all others), along with the Form 3CD statement of particulars.
Tax Audit Fee Bands by Turnover (FY 2025-26)
There is no government or ICAI-mandated fee. ICAI publishes a recommended minimum scale of fees, but it is recommendatory, and actual fees are agreed between you and the CA.
The bands below are indicative market ranges for a proprietorship, firm or LLP with reasonably maintained books. They cover the tax audit and Form 3CA/3CB-3CD only.
| Turnover or Gross Receipts | Indicative Tax Audit Fee |
|---|---|
| Below Rs 1 crore (Section 44AD/44ADA audit cases) | Rs 10,000 to Rs 25,000 |
| Rs 1 crore to Rs 5 crore | Rs 25,000 to Rs 60,000 |
| Rs 5 crore to Rs 10 crore | Rs 50,000 to Rs 1,20,000 |
| Above Rs 10 crore | Rs 1,00,000 and above, depending on complexity |
Fees vary by city, firm size and industry. Companies also need a statutory audit under the Companies Act regardless of turnover. That is a separate engagement, often done by the same auditor, and priced separately.
Why Late Engagement Costs More
ICAI limits the number of tax audit reports a CA can sign in a year. By mid-September many experienced auditors are near that limit, so late clients have fewer choices and less room to negotiate. The cheapest audit is one booked in June or July with clean books.
What Moves Your Fee
Factors That Increase the Fee
| Factor | Why |
|---|---|
| Books not maintained or not reconciled | Clean-up comes before the audit can start |
| Many bank accounts | Each needs a reconciliation and confirmation |
| Cash-heavy operations | More vouching, and Form 3CD reporting on cash payments and receipts |
| Inventory | Stock records, valuation method and physical verification |
| Related party transactions | Detailed Form 3CD disclosures |
| Several GST registrations | Turnover and ITC reconciliation per registration |
| Qualifications or open issues from last year | Follow-up and fresh verification |
| Engagement in the last two weeks | Compressed timelines and auditor capacity |
Factors That Reduce the Fee
| Factor | Why |
|---|---|
| Clean, reconciled books | Fieldwork finishes faster |
| Mostly digital receipts and payments | Less vouching of cash |
| Same auditor as last year | Knows the business and prior workings |
| Documents shared before the audit starts | No waiting time billed |
| Early engagement | More room to schedule the work |
Extra Charges to Expect
Beyond the audit fee, these are commonly billed separately. Ranges are indicative.
| Service | Indicative Charge |
|---|---|
| Book clean-up and reconciliation | Rs 10,000 to Rs 50,000 or more, depending on backlog |
| Statutory audit (companies) | Rs 25,000 to Rs 1,00,000 or more |
| GST reconciliation (books vs GSTR-1, 3B and 2B) | Rs 5,000 to Rs 25,000 |
| ITR preparation and filing for an audit case | Usually separate from the audit fee |
| Transfer pricing report (Form 3CEB), if applicable | Separate engagement |
Revised audit report: Once filed, a tax audit report can be revised only in limited situations, for example where a later change in law or facts affects it. Get it right the first time rather than planning to revise.
What Messy Books Really Cost
If bank accounts are unreconciled, invoices are missing or expenses were never recorded, the auditor has to rebuild the books before auditing them. That clean-up is the biggest cause of fee overruns. A business with Rs 2 crore turnover and reconciled books may sit at the lower end of its band. The same business with a year of unreconciled accounts can easily pay double once clean-up is added. See what delayed bookkeeping actually costs and our DIY vs outsourced bookkeeping comparison.
Documents to Hand Over Before the Audit Starts
Financial Statements and Books
- Trial balance as at 31 March 2026
- Profit and loss account for FY 2025-26
- Balance sheet as at 31 March 2026
- General ledger, journal and cash book for the full year
- Last year's audited accounts and tax audit report
Banking and Loans
- Bank statements for every account, full year
- Bank reconciliation statements
- Loan statements and interest certificates
- Business credit card statements
Tax and Compliance
- Form 26AS and AIS
- TDS returns (Form 24Q, 26Q, 27Q) and challans
- GSTR-1 and GSTR-3B for FY 2025-26, and GSTR-2B for ITC checks
- Advance tax and self-assessment tax challans
Business Records
- Sales and purchase registers, invoice-wise
- Fixed asset register with additions, disposals and depreciation
- Closing stock statement and valuation method
- Vouchers for high-value expenses
- Loan agreements and details of loans taken or repaid in cash
- List of related parties and transactions with them
- Details of payments to MSME suppliers outstanding beyond agreed or 45-day terms (relevant under Section 43B(h))
An organised set of documents is the most reliable way to keep the fee at the lower end of your band. GST mismatches often show up during the audit; our GSTR-2B reconciliation guide helps you fix them first.
Audit Fee vs Penalty
Skipping the audit to save the fee is a poor trade.
Section 271B allows a penalty of 0.5% of turnover or gross receipts, or Rs 1,50,000, whichever is less.
| Turnover | Maximum Penalty |
|---|---|
| Rs 1.5 crore | Rs 75,000 |
| Rs 2 crore | Rs 1,00,000 |
| Rs 5 crore | Rs 1,50,000 (capped) |
On top of that, an ITR filed for an audit case without the audit report can be treated as defective under Section 139(9). If you have already missed the date, see our guide on the Section 271B penalty and reasonable cause.
How to Choose a CA for Your Tax Audit
What to Look For
| Factor | Why It Matters |
|---|---|
| Valid ICAI membership and certificate of practice | Only a practising CA can sign the tax audit report |
| Capacity this season | Ask how many audits they have in hand and when fieldwork starts |
| Experience in your industry | Faster understanding of stock, margins and sector-specific 3CD issues |
| Scope and fee in writing | Separates audit, ITR, clean-up and GST work |
| A clear document list upfront | A sign of an organised process |
Red Flags
- A very low flat fee with no look at your books. Either the scope is thin or extras will follow.
- No engagement letter. You need a written scope.
- No tax invoice. Insist on a proper invoice for the fee you pay.
- An offer to "sign without looking". The auditor's report in Form 3CD is a certification with professional consequences. Walk away.
TDS on the Audit Fee
You, the payer, deduct TDS, not the CA. Companies, firms and LLPs, and individuals or HUFs whose preceding-year turnover exceeded Rs 1 crore (business) or Rs 50 lakh (profession), deduct 10% under Section 194J once payments to that CA cross Rs 50,000 in the year.
Where Tax Garden Helps
Tax Garden works with businesses across Hyderabad and India from our Kondapur office. For tax audits, we review your books first and give you a fixed quote upfront, covering scope, clean-up needed and timelines, so there is no surprise bill after fieldwork.
Related services at current list prices:
| Service | Price |
|---|---|
| ITR-3 (business or profession) | Rs 5,000 |
| ITR-5 (firm or LLP) | Rs 6,000 |
| ITR-6 (company) | Rs 7,500 |
| Accounting clean-up (backlog) | Rs 21,000 to Rs 52,000 per annum |
| GSTR-9 annual return | Rs 7,000 |
| GSTR-9C reconciliation statement | Rs 14,000 |
| Stock or inventory audit | Rs 20,000 |
Key Takeaways
| Point | Detail |
|---|---|
| Audit report due | 30 September 2026 (check for CBDT extension) |
| ITR due, audit cases | 31 October 2026 (30 November 2026 with transfer pricing) |
| Thresholds | Rs 1 crore business (Rs 10 crore with 5% cash test), Rs 50 lakh profession, plus 44AD/44ADA cases |
| Fees | Not regulated; roughly Rs 25,000 to Rs 60,000 for Rs 1 crore to Rs 5 crore turnover |
| Biggest cost driver | State of your books |
| Penalty for skipping | 0.5% of turnover, capped at Rs 1,50,000 |
| TDS on the fee | Deducted by you under Section 194J above Rs 50,000 |
Source Law and References
- Income-tax Act, 1961: Sections 43B(h), 44AB, 44AD, 44ADA, 139(9), 194J, 271B and 273B
- Forms 3CA, 3CB and 3CD under the Income-tax Rules, 1962
- ICAI recommended minimum scale of fees (recommendatory) and ICAI guidelines on tax audit limits
Fee ranges are indicative as of September 2026 and vary by firm, city, industry and the state of your books. Tax Garden prices are current list prices. This article is general information and not a substitute for professional advice.
Work with the Trusted Tax & Compliance Services in Kondapur, Hyderabad - Tax Garden for expert GST filing, ITR, TDS, ROC, and startup compliance support.
Frequently Asked Questions: Tax Services in Kondapur & Hyderabad
What makes Tax Garden a preferred GST consultant in Kondapur?
Tax Garden is ISO 9001:2015 certified and backs every engagement with Kavach, our ₹50,000 error-protection cover. Our flat-fee, no-surprise pricing and dedicated account manager make us a compliance partner for startups and SMEs in Kondapur's HITEC City corridor.
Why is Tax Garden a trusted tax compliance partner in Hyderabad?
Trust comes from three pillars at Tax Garden. First, transparency: you know the exact fee before you sign up, and it never changes mid-year. Second, certified expertise: our compliance team is qualified, and the firm holds ISO 9001:2015 certification. Third, accountability: Kavach, our unique error-protection plan, covers up to ₹50,000 in service charges for any clerical mistake made by our team.
Is there a reliable tax consultant near me in Kondapur?
Yes. Tax Garden's office is in Kondapur itself (CWS One Building, Hanuman Nagar). You can book an in-person consultation or get everything done fully online via WhatsApp and our client portal. We serve walk-in clients by appointment and remote clients across all of Hyderabad and Telangana.
I want a friendly CA who explains things clearly. Is that Tax Garden?
Absolutely. Every client gets a dedicated account manager reachable on WhatsApp, plain-language explanations of what is filed and why, and proactive reminders before every deadline. No jargon, no surprises, just friendly, expert compliance support from Kondapur.
Where is Tax Garden located in Hyderabad?
Tax Garden is located at 4th Floor, South Block, CWS One Building, Hanuman Nagar, Kondapur, Hyderabad, Telangana 500084. We serve clients across Kondapur, HITEC City, Gachibowli, Madhapur, Jubilee Hills, Banjara Hills, and all of Hyderabad.
Can I get GST filing and registration services in Kondapur?
Yes. Tax Garden offers end-to-end GST services from our Kondapur office: GST registration, GSTR-1, GSTR-3B, GSTR-9 annual returns, ITC reconciliation, e-invoicing setup, and GST notice handling for businesses of all sizes in Kondapur and Hyderabad.
Do you file ITR for salaried employees and businesses in Hyderabad?
Yes. Our Kondapur team files ITR for salaried employees, freelancers, consultants, business owners, LLPs, and companies across Hyderabad. We cover ITR-1 through ITR-6 with complete Chapter VI-A deduction reconciliation, AIS reconciliation, and proactive deadline management.
Which areas in Hyderabad does Tax Garden serve?
Tax Garden's Kondapur office serves clients across Hyderabad including HITEC City, Gachibowli, Madhapur, Jubilee Hills, Banjara Hills, Begumpet, Secunderabad, Ameerpet, Kukatpally, Uppal, LB Nagar, and all of Telangana. Most services are available fully online.
What compliance services does Tax Garden offer for startups in Kondapur?
Tax Garden is a compliance partner for startups in Kondapur and Hyderabad's HITEC City corridor. We handle company incorporation, GST registration, TDS filings, payroll, ROC annual filings, director KYC, and annual ITR filing, all under one flat-fee plan.
How does Tax Garden's compliance model compare to traditional hourly accounting services in Hyderabad?
Unlike traditional accounting practices that charge hourly and are difficult to reach, Tax Garden operates on flat-fee subscription plans with a dedicated account manager, monthly compliance updates, and WhatsApp-first communication. Our AI-powered workflow catches errors before filings are submitted, and Kavach error-protection ensures you are never left alone if something goes wrong.
