Audit & Compliance Support

Assistance in tax audits, scrutiny notices, and tax compliance.

Tax compliance is a critical responsibility for every business, requiring accurate filing, timely audits, and proper responses to scrutiny notices. Any mismatch in financial records can trigger audits and compliance issues, leading to penalties or legal scrutiny.

At Tax360, we provide end-to-end assistance for tax audits, responding to scrutiny notices, and ensuring businesses stay compliant with the latest tax regulations, including updates from the Union Budget 2025-26.

Tax Audit & Compliance Support at a Glance

The following table provides a comprehensive breakdown of tax audit and compliance requirements under the Income Tax Act

Compliance Area	Relevant Income Tax Section	Key Points	Latest Budget 2025-26 Update
Tax Audit Requirement	Section 44AB	Businesses with a turnover exceeding ₹1 crore (₹10 crore for 95% digital transactions) require an audit.	The turnover limit remains ₹10 crore for digital transactions.
Presumptive Taxation for Businesses	Section 44AD	Small businesses (turnover up to ₹3 crore) can opt for presumptive taxation, paying tax on 8% (cash) or 6% (digital) of turnover.	Turnover threshold increased from ₹2 crore to ₹3 crore.
Presumptive Taxation for Professionals	Section 44ADA	Professionals (income up to ₹75 lakh) can opt for presumptive taxation at 50% of receipts.	Limit increased from ₹50 lakh to ₹75 lakh.
Filing of Audit Report	Form 3CA/3CB & Form 3CD	Tax audits must be reported using prescribed forms, detailing financials, deductions, and compliance.	No major changes in forms but stricter scrutiny is expected.

Handling Scrutiny Notices with Ease

Scrutiny assessments under Section 143(2) can be stressful, but Tax360 simplifies the process.

Scrutiny Type	Relevant Section	Key Considerations	Latest Budget 2025-26 Update
Limited Scrutiny	Section 143(2)	Issued for specific discrepancies (e.g., TDS mismatch, high-value transactions).t	More AI-based selection of scrutiny cases.
Full Scrutiny	Section 143(3)	Detailed assessment of financial records, requiring document submission.	Stricter scrutiny on high-net-worth individuals (HNWIs) and businesses with inconsistent filings.
Best Judgment Assessment	Section 144	If a taxpayer fails to respond, authorities can finalize assessments based on available data.	Increased use of digital verification and automated assessments.

Tax360’s Role in Scrutiny Handling

Drafting professional responses to scrutiny queries.
Reconciliation of TDS (Form 26AS), GST, and ITR filings to avoid mismatches.
Representation before tax authorities to ensure favorable outcomes.

TDS Compliance & Credit Claiming

TDS compliance ensures that tax deductions made by businesses are accurately recorded and claimed. Here’s how we help:

TDS Compliance Area	Relevant Section	Key Points	Latest Budget 2025-26 Update
TDS Deduction & Deposits	Section 194Q	TDS on purchases exceeding ₹50 lakh at 0.1%.	Increased penalty for non-compliance.
TCS on Receipts	Section 206C(1H)	TCS of 0.1% applicable on receipts above ₹50 lakh.	Strict reporting norms for businesses with high cash transactions.
Claiming TDS Credit	Section 199	TDS deducted can be claimed in the ITR if reflected in Form 26AS & AIS.	AI-based reconciliation introduced for real-time credit matching.
TDS on Salary Payments	Section 192	Employers must deduct TDS as per the employee’s taxable income.	Revised tax slab limits affecting TDS deductions.

What This Means for Businesses

Accurate deduction & timely deposit of TDS avoids penalties.
TDS credits should match ITR filings to prevent scrutiny.
Updated reporting requirements demand stricter compliance.

TAX360 ROLE

Complete Tax Audit Assistance – Hassle-free compliance under Sections 44AB, 44AD, 44ADA.
Expert Handling of Scrutiny Notices– Seamless response to notices under Sections 143(2), 143(3), and 144.
TDS & IT Return Reconciliation – Accurate credit claims under Sections 192, 194Q, and 199.
Stay Updated with Tax Changes – We help businesses adapt to new tax laws smoothly.

Tax Audits & Scrutiny Simplified!

Facing a tax audit? Got a scrutiny notice? Tax360 ensures smooth compliance, accurate filings, and expert tax guidance!

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