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A business needs a tax audit and does not know which report form applies or what data the auditor will need.
If the accounts are audited under another law use 3CA, otherwise 3CB; both carry 3CD, whose clauses draw on reconciled TDS, dues, loans, cash and GST figures.
Entity type, applicable audit law, and clause-wise schedules for TDS, Section 43B dues, loans, cash payments and GST.
The right report form and a ready set of reconciled schedules for the auditor.
Form 3CA is the tax audit report used when your accounts are already audited under another law, such as a company’s accounts under the Companies Act 2013. Form 3CB is used when they are not, which is the usual case for proprietors and partnership firms. Both are filed together with Form 3CD, the detailed statement of particulars that the auditor fills in.
These forms belong to Section 44AB and Rule 6G under the Income-tax Act 1961, and they apply to the audit of FY 2025-26 carried out in 2026. From tax year 2026-27, the Income-tax Rules 2026 replace all three with a single tax audit form, Form 26, under the Income-tax Act 2025.
Which form does each type of business use?
| Entity | Accounts audited under another law? | Report form | Signed by |
|---|---|---|---|
| Private or public company | Yes, under the Companies Act 2013 | 3CA + 3CD | Practising CA |
| LLP above the audit limit under the LLP Act | Yes | 3CA + 3CD | Practising CA |
| LLP below that limit | No | 3CB + 3CD | Practising CA |
| Partnership firm | Usually no | 3CB + 3CD | Practising CA |
| Proprietor | No | 3CB + 3CD | Practising CA |
Under the LLP rules, an LLP needs a statutory audit only when its turnover exceeds ₹40 lakh or its contribution exceeds ₹25 lakh, so a small LLP may use 3CB.
When is a tax audit needed at all?
For a business, Section 44AB of the 1961 Act broadly requires a tax audit when turnover exceeds ₹1 crore. The limit rises to ₹10 crore if cash receipts and cash payments are each no more than 5% of the totals. For professionals the limit is ₹50 lakh, or ₹75 lakh where the same 5% cash condition is met. Some presumptive-tax cases have their own triggers, so confirm with your CA.
What does Form 3CD ask for?
Form 3CD has 44 clauses. Many need figures your accounts team has to prepare and reconcile:
- TDS and TCS: whether tax was deducted, at what rate, and deposited on time, tied to your TDS credit statement and returns.
- Section 43B dues: statutory dues, bonus and loan interest unpaid at year-end, and when they were paid.
- MSME payables: amounts not paid within the MSMED Act period.
- Loans and deposits taken or repaid in cash above ₹20,000.
- Cash payments above ₹10,000 to one person in a day.
- GST break-up of expenditure, split between registered and unregistered suppliers. CBDT deferred this clause for several years, so ask your auditor how it applies for your year.
Worked example: same size, different forms
A trading firm and a private company each have turnover of ₹2,85,00,000, which is above the ₹1 crore limit.
- The trading firm is a partnership whose accounts are not audited under any other law. Its CA files Form 3CB with Form 3CD.
- The private company’s accounts are audited under the Companies Act 2013. Its CA files Form 3CA with Form 3CD, and relies on the statutory audit for the opinion on the accounts.
For the finance team, the Form 3CD work is largely the same in both cases: the TDS, 43B, MSME, cash and GST schedules. The company has one advantage: much of the reconciliation was already tested in the statutory audit, so starting the 3CD schedules right after that audit saves rework.
What to read next
- Next step: My CA asked for tax audit documents: what records should I keep ready.
- Tax Audit Form 3CD reconciliation items.
- Tax audit Form 3CD mandate for CA firms.
- Related: TDS reconciliation software.
TransactIG reconciles TDS and matches bank statement lines to your books, with an exception queue and audit-ready exports that support the TDS schedules in Form 3CD.