ITR Filing for Audited Businesses

ITR Filing for Audited Businesses is one of the most crucial compliance requirements for companies, partnerships, and certain high-turnover proprietorships in India. While regular ITR filing is already complex, the process becomes far more detailed and documentation-heavy when a business falls under the audit requirement of Section 44AB of the Income Tax Act.
From maintaining accurate books of accounts to coordinating with auditors, managing tax adjustments, handling GST impacts, and preparing final financial statements — audited entities must follow a structured and timely procedure.

In this guest post, we break down everything you need to know about ITR Filing for Audited Businesses including eligibility, documents required, due dates, form selection, and compliance tips. We will also highlight how skills like Certified Corporate Accounting, SAP FICO (Finance & Controlling), and advanced knowledge of Taxation (Income Tax & GST) play a vital role in ensuring accurate filing.

What Are Audited Businesses?

Businesses required to undergo a tax audit under Section 44AB generally include:

1. Companies (Private/Public)

All companies must get their books audited under the Companies Act. Most also require tax audit if their turnover exceeds the prescribed limit.

2. Partnership Firms

If total turnover exceeds ₹1 crore in normal cases or ₹10 crore under the enhanced limit (when more than 95% transactions are digital), a tax audit is mandatory.

3. Proprietorships

A sole proprietor must undergo audit if turnover exceeds the above limits or if declaring profits under Section 44AD but choosing to declare lower profits.

4. Professionals

Doctors, lawyers, CAs, architects, consultants, etc. with gross receipts above ₹50 lakh per year.

5. Businesses Under Presumptive Taxation

If they opt out or declare lower profits than the presumptive percentage.

Why Do Audited Businesses Need Special ITR Filing?

Unlike non-audited taxpayers, audited businesses must:

✔ Prepare full financial statements
✔ Follow accounting standards
✔ Submit detailed tax audit reports
✔ Reconcile GST and Income Tax data
✔ Provide disclosure of loans, payments, depreciation, inventories, etc.
✔ Report adjustments as per tax laws

This involves higher scrutiny and therefore requires professional accuracy.

Choosing the Correct ITR Form for Audited Businesses

Different types of audited businesses must file different ITR forms:

ITR-3

For individuals and HUFs running audited businesses or professions.

ITR-5

For partnership firms, LLPs, AOPs, and BOIs.

ITR-6

For all companies (except those claiming exemption under Section 11).

Choosing the wrong form may result in defects, notices, or rejection of return.

Documents Required for ITR Filing for Audited Businesses

To ensure seamless filing, the following documents must be prepared:

Financial Statements

• Balance Sheet

• Profit & Loss Account

• Notes to Accounts

• Cash Flow Statement (for companies)

Tax Audit Report (Form 3CD + 3CA/3CB)

Contains detailed reporting of compliances, depreciation, payments, loans, etc.

GST Returns

Reconciliation of:

• GSTR-1

• GSTR-3B

• GSTR-2B

• E-way bills (if applicable)

TDS Details

• Form 26AS

• AIS/TIS

• TDS Certificates

Bank Statements

All business accounts for the full year.

Loan Details

Interest calculations, repayment schedules, confirmations.

Fixed Asset Register

With depreciation as per Income Tax Act.

Other Registers

• Inventory

• Salary register

• Expense ledger

• Purchase/sales reports

Step-by-Step Process of ITR Filing for Audited Businesses

Step 1: Finalization of Books of Accounts

This includes posting entries, ledger scrutiny, bank reconciliation, vendor/creditor reconciliation, and adjusting prepaid/ outstanding expenses.

Here is where knowledge of Certified Corporate Accounting and systems like SAP FICO (Finance & Controlling) is extremely valuable.

Step 2: Conducting the Tax Audit

Auditors verify:

• Turnover

• Expenses

• Compliance with tax rules

• Depreciation

• Loans & advances

• Cash transactions

• TDS compliance

They prepare the Tax Audit Report (TAR).

Step 3: Uploading the Tax Audit Report

Form 3CA/3CB and 3CD must be uploaded on the Income Tax Portal by the auditor and approved by the assessee.

Step 4: Compute the Total Tax Liability

Based on:

• Business income

• Disallowances

• Depreciation

• Deductions

• MAT (Minimum Alternate Tax) for companies

Step 5: File the ITR

After TAR approval, the ITR is filed with all financial details, tax computation, schedules, and disclosures.

Step 6: Verification

ITR must be verified:

• Through Aadhaar OTP

• Net banking

• DSC (mandatory for companies)

Due Dates for Audited Business ITR Filing

For businesses requiring an audit:

???? Tax Audit Report Due Date: 30th September
???? ITR Filing Due Date: 31st October

For transfer pricing cases:

???? TAR Due Date: 31st October
???? ITR Filing Due Date: 30th November

Late filing attracts:

• Penalties

• Interest under 234A/B/C

• Possible scrutiny or notices

ITR Filing Challenges for Audited Businesses

Many audited entities face the following issues:

❌ GST vs Income Tax mismatch

❌ Disallowances due to cash transactions

❌ Inaccurate depreciation calculations

❌ Unreconciled vendor/creditor balances

❌ TDS mismatches in 26AS/AIS

❌ Incorrect turnover calculation

❌ Delay in audit report submission

These can be avoided through professional accounting practices.

How SAP FICO and Certified Corporate Accounting Skills Help

Professionals trained in:

✔ Certified Corporate Accounting

are better equipped to handle real-world data, entries, reconciliations, and year-end adjustments.

✔ SAP FICO (Finance & Controlling)

helps maintain accurate accounts, generate MIS reports, handle financial postings, and simplify audit preparation.

✔ Taxation (Income Tax & GST)

ensures compliance with the latest rules, seamless GST-ITR reconciliation, and error-free tax filing.

These skills are essential for businesses wanting accuracy, compliance, and faster audit completion.

Conclusion

ITR Filing for Audited Businesses is not just a legal obligation but a crucial compliance activity that ensures financial transparency and tax accuracy. With multiple reporting requirements, reconciliations, and disclosures, audited businesses must follow a systematic approach to prevent penalties, notices, or compliance failures.

Professionals equipped with Certified Corporate Accounting, SAP FICO (Finance & Controlling), and strong knowledge in Taxation (Income Tax & GST) are better able to manage the complexities of audit, accounts finalization, and ITR filing — resulting in smoother operations and complete legal compliance.