Tax Audit Deadline 2026: Check Whether Your Business Needs Audit Before 30 September

Income Tax Alert 2026

Tax Audit Deadline Is Near: Does Your Business Need an Audit?

The normal tax-audit report deadline for FY 2025–26 is approaching. Check your turnover, cash transactions and presumptive-tax position now.

Important: As of 21 September 2026, no official extension has been identified. For normal non-transfer-pricing cases, the tax-audit report deadline remains 30 September 2026.

Many business owners look only at sales turnover and conclude that tax audit is not applicable. That can be risky.

Tax-audit applicability may depend on turnover, gross receipts, cash collections, cash payments, the nature of the activity and whether presumptive taxation was used.

Normal tax-audit report deadline 30 September 2026 For FY 2025–26, subject to the applicable category and any official extension

Basic tax-audit limits

BUS

Business

Tax audit is generally applicable when total sales, turnover or gross receipts exceed ₹1 crore.

PRO

Profession

Tax audit is generally applicable when professional gross receipts exceed ₹50 lakh.

Digital-business relief up to ₹10 crore For a business, the tax-audit turnover limit may increase from ₹1 crore to ₹10 crore when both cash receipts and cash payments do not exceed 5% of their respective totals.

Both conditions must be checked separately. A business cannot apply the ₹10 crore limit merely because most customer collections are received through banking channels.

Quick applicability table

Taxpayer situation	General tax-audit position
Business turnover up to ₹1 crore	Normally not required, subject to presumptive-tax and other special provisions
Business turnover above ₹1 crore	Normally applicable unless the enhanced ₹10 crore digital threshold is satisfied
Business turnover above ₹10 crore	Tax audit is generally applicable
Professional receipts above ₹50 lakh	Tax audit is generally applicable, subject to the special presumptive-tax provisions
Eligible professional using Section 44ADA	Special relief may apply where the prescribed presumptive income is declared and statutory conditions are satisfied
Eligible business declaring income under Section 44AD	Audit may not be required if the presumptive-tax conditions and required profit declaration are satisfied
Lower profit declared under presumptive provisions	Tax audit may become applicable depending on the provision, total income and taxpayer’s facts

Do not ignore the presumptive-tax rules

Sections 44AD and 44ADA provide simplified taxation for eligible businesses and specified professionals. However, they are not automatic exemptions from maintaining proper records in every situation.

Audit consequences can arise when a taxpayer declares profit below the prescribed presumptive level, exits Section 44AD after opting for it, or does not satisfy the eligibility conditions.

Special caution for Section 44AD: The five-year restriction and the taxpayer’s total income should be examined before concluding whether audit is applicable.

What about F&O traders?

Futures and options transactions are generally treated as business transactions for Income Tax purposes. The tax-audit decision is based on the correctly calculated F&O turnover, not merely on the total value of contracts shown by the broker.

Profit, loss, options premium and reversal transactions may affect the turnover calculation. The broker’s contract value should not be used directly without proper computation.

Which forms are used for tax audit?

Situation	Audit forms
Accounts audited under another law	Form 3CA with Form 3CD
Accounts not audited under another law	Form 3CB with Form 3CD

The Chartered Accountant uploads the tax-audit report on the Income Tax e-filing portal. The taxpayer must then review and accept the report through the taxpayer’s login.

Documents generally required

• ✓ Final trial balance and financial statements
• ✓ Sales, purchase and expense ledgers
• ✓ Bank statements and bank reconciliation
• ✓ GST returns and GST reconciliation
• ✓ TDS returns, challans and expense reconciliation
• ✓ Fixed-asset register and depreciation details
• ✓ Loan, deposit and related-party transaction details
• ✓ Cash receipt and cash payment summary

What happens if tax audit is not completed?

Possible penalty under Section 271B: The penalty may be 0.5% of turnover or gross receipts, subject to a maximum of ₹1,50,000. Relief may be available where the taxpayer proves a reasonable cause, but it should not be assumed automatically.

Delay can also affect the filing of the Income Tax Return, carry-forward of certain losses and the overall accuracy of reported financial information.

Take action before the final week

Tax audit is not only the filing of Form 3CD. Books, GST, TDS, turnover, cash transactions, loans and statutory payments must be reviewed before the report is signed.

Early submission of records gives sufficient time to identify and correct differences before the deadline.

Not sure whether tax audit applies to you?

We can review your turnover, digital transactions, presumptive-tax position and financial records and help you complete the tax audit correctly and on time.

Call or WhatsApp: 7760252581

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Disclaimer: This article provides general information as of 21 September 2026. Tax-audit applicability depends on the nature of activity, turnover calculation, cash transactions, presumptive-tax history and total income. Professional review is recommended.

LLP vs Private Limited Company in 2026: Which Is Better for Your Startup?

 

Startup Decision Guide 2026

LLP vs Private Limited Company: Which Is Better for Your Startup?

Your business structure can affect funding, ownership, taxation, compliance and future growth. Make the decision before registration, not after problems begin.

Planning to start a business?
Do not select LLP or Private Limited Company only because someone says it is cheaper or more popular. The correct choice depends on how you plan to operate, raise funds and grow.

Both LLPs and Private Limited Companies provide a separate legal structure and limited liability protection. However, they are not designed for the same type of business.

The simple decision Choose an LLP for flexibility and closely held operations. Choose a Private Limited Company when equity funding and rapid scaling are important.

What is an LLP?

A Limited Liability Partnership combines certain features of a partnership with limited liability protection.

It is generally suitable for professional services, consulting firms, family-run businesses and businesses managed directly by a small group of partners.

What is a Private Limited Company?

A Private Limited Company has shareholders as owners and directors as its managers. Its ownership is represented through shares.

It is generally preferred by startups planning to raise equity funding, issue shares, introduce investors or build a business for large-scale growth.

LLP

LLP may be suitable when:

• ✓ The business will remain closely held
• ✓ External equity funding is not planned
• ✓ Partners want operational flexibility
• ✓ The founders provide professional or consulting services

PVT

Private Limited may be suitable when:

• ✓ The startup plans to approach investors
• ✓ Employee stock options may be introduced
• ✓ Ownership may change through share transfers
• ✓ The founders want to scale or sell the business later

LLP vs Private Limited Company: Quick comparison

Decision point	LLP	Private Limited Company
Owners	Partners	Shareholders
Management	Designated partners and partners	Board of directors
Minimum requirement	Two designated partners	Two members and two directors
Equity shares	Cannot issue company-style equity shares	Can issue shares subject to applicable law
Investor preference	Generally less suitable for equity investors	Commonly preferred for equity investment
Compliance level	Generally lower	Generally higher
Statutory audit	Required after prescribed limits are crossed	Normally mandatory irrespective of turnover
Annual MCA filings	Normally Form 8 and Form 11	Normally financial statements and annual return forms
Profit withdrawal	Governed by the LLP agreement and tax law	Salary, dividend or other permitted modes
Best suited for	Professional and closely held businesses	Funded and scalable startups

Which structure is better for funding?

A Private Limited Company is normally more suitable when the founders plan to raise money from angel investors, venture capital funds or other equity investors.

Investors can receive shares, and their ownership percentage can be clearly recorded. A company can also create different rights and employee incentive arrangements, subject to legal requirements.

An LLP does not issue equity shares. A new investor normally needs to become a partner and contribute under the LLP arrangement. This may not match the structure expected by many equity investors.

Which structure has lower compliance?

An LLP generally has fewer corporate procedures. It does not normally require Board meetings or an AGM in the same manner as a company.

A Private Limited Company must maintain proper statutory records, conduct required meetings, prepare financial statements, complete a statutory audit and file annual forms with the Registrar of Companies.

Lower compliance should not be the only deciding factor. Choosing an LLP today and converting or restructuring later may involve additional cost, documentation and tax analysis.

What about taxation?

LLPs and companies are taxed differently. A domestic company may be eligible to choose a concessional corporate tax regime subject to conditions. An LLP is generally taxed at the rate applicable to firms.

However, the headline tax rate alone should not decide the structure. Profit withdrawal, partner remuneration, interest, dividends, brought forward losses and future investment plans must also be considered.

Can both obtain Startup India recognition?

Both a Private Limited Company and an LLP may apply for DPIIT startup recognition if the entity satisfies the applicable conditions relating to age, turnover, innovation and business activity.

Startup recognition does not automatically grant every tax benefit. Separate eligibility conditions and approvals may apply.

Our practical recommendation

Consider an LLP if: You are starting a professional, consulting, family-run or closely managed business and do not expect equity investment.

Consider a Private Limited Company if: You plan to raise equity funding, issue ESOPs, onboard investors, scale rapidly or create a future exit opportunity.

Questions to answer before registration

• 1 Will you raise equity investment in the next few years?
• 2 How will ownership and profit-sharing be divided?
• 3 Will employees receive ownership incentives?
• 4 How much annual compliance can the business manage?
• 5 How will the founders withdraw money from the entity?
• 6 Is a future sale, merger or investor exit planned?

A short professional consultation before incorporation can prevent an expensive restructuring later.

Not sure whether to register an LLP or a company?

We can review your ownership, funding, tax and growth plans and help you select and register the right business structure.

Call or WhatsApp: 7760252581

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Disclaimer: This article provides general information as of 20 September 2026. Registration, tax and compliance requirements depend on the founders’ facts and applicable law. Obtain professional advice before selecting or changing a business structure.

AGM Deadline 2026: Is Your Company Ready Before 30 September?

Company Compliance Alert 2026

30 September Is Near: Is Your Company Ready for AGM?

A missed AGM or ROC filing deadline can lead to additional fees, penalties and avoidable compliance problems.

Important: For most existing companies whose financial year ended on 31 March 2026, the normal AGM deadline is 30 September 2026.

Many business owners believe that annual compliance is completed once the accounts are prepared. That is not correct.

The financial statements must be approved, the AGM must be properly conducted, and the applicable forms must be filed with the Registrar of Companies within the prescribed time.

Waiting until the last week may create problems with audit completion, signatures, DSC validity, meeting documents and MCA filing.

Three important dates to track

30 Sep 2026 Normal AGM deadline

30 Days Time for filing financial statements after AGM

60 Days Time for filing annual return after AGM

Which ROC forms are generally required?

Compliance	Applicable form	Normal timeline
Financial statements	AOC-4 or applicable variant	Within 30 days of AGM
Annual return of small company or OPC	MGT-7A	Within 60 days of AGM or applicable due date
Annual return of other companies	MGT-7	Within 60 days of AGM
Auditor appointment, where applicable	ADT-1	Within 15 days of appointment at AGM

If the AGM is held on 30 September 2026, the normal filing timelines generally result in AOC-4 becoming due around 30 October 2026 and MGT-7 or MGT-7A becoming due around 29 November 2026. The exact deadline should be checked based on the company’s facts.

What should be completed before the AGM?

📚

Finalise the accounts

Complete the books, reconciliations, schedules and financial statements.

🔍

Complete the audit

Provide the auditor with proper records, explanations and supporting documents.

📝

Prepare meeting papers

Keep the Board’s Report, AGM notice, attendance records and resolutions ready.

🔐

Check DSC and master data

Confirm that DSCs are active and the company’s MCA records are properly updated.

Quick AGM readiness checklist

Check these items today:

• ✓ Books of account are updated up to 31 March 2026
• ✓ Bank, GST, TDS and ledger reconciliations are completed
• ✓ Financial statements and schedules are finalised
• ✓ Statutory audit is completed or nearing completion
• ✓ Board’s Report and AGM notice are prepared
• ✓ Director and auditor documents are available
• ✓ Related-party transactions and loan disclosures are checked
• ✓ DSCs of authorised signatories are active

Are all companies covered by the same deadline?

No. The due date may be different for a newly incorporated company, a company holding its first AGM, an OPC, or a company that has obtained a valid extension.

Remember: An OPC is generally not required to hold an AGM. However, its financial statements and annual return must still be filed within the applicable statutory timelines.

Can the AGM deadline be extended?

The Registrar of Companies may grant an extension of up to three months for an AGM other than the first AGM.

The company must apply before the original due date. It should not assume that the extension will automatically be granted.

Why should your company start early?

Last-minute annual filing may expose errors in shareholding details, director records, related-party transactions, unsecured loans, statutory dues or financial statements.

An early compliance review gives the company sufficient time to correct its records before signing and filing.

Timely action also reduces the risk of additional filing fees, penalties and other legal consequences.

Need help with AGM and ROC annual filing?

We can assist with finalisation of accounts, statutory audit, AGM documentation, AOC-4 and MGT-7 or MGT-7A filing.

Call or WhatsApp: 7760252581

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Disclaimer: This article provides general information as of 19 September 2026. The applicable due date and forms depend on the company’s incorporation date, constitution, AGM date and regulatory status. Professional review is recommended before filing.

F&O Taxation in India: Everything Every Trader Should Know

 

Are you trading in Futures & Options (F&O)?

Many traders are confused about:

• How F&O turnover is calculated

• Whether tax audit is applicable

• How F&O profit or loss is taxed

• How to report F&O transactions in ITR

• How to carry forward F&O losses

• Whether expenses like brokerage and other charges can be claimed

Let us simplify it.

1. Is F&O Trading a Business?

Yes. For income-tax purposes, F&O trading on a recognised stock exchange is generally treated as business income, not capital gains.

Therefore, proper calculation and reporting are important.

2. How is F&O Turnover Calculated?

F&O turnover is not simply the total value of your trades.

Generally, turnover is calculated based on:

• Total of favourable and unfavourable differences

• Profit and loss from squared-up transactions

• Premium received on options, subject to applicable rules

• Reverse trades, as applicable

The turnover figure is important because it can determine whether tax audit provisions apply.

3. When is Tax Audit Applicable?

Tax audit applicability depends on your business turnover, profit/loss and other conditions prescribed under the Income-tax Act.

A trader should not decide audit applicability merely by looking at the total contract value shown by the broker.

The correct approach is to first calculate the tax turnover, determine the applicable provisions and then decide whether an audit is required.

4. What if I Have an F&O Loss?

F&O loss should be properly reported in the Income Tax Return.

Subject to the applicable conditions, a properly disclosed business loss can generally be carried forward and set off against eligible future business income.

Therefore, simply ignoring an F&O loss may not be advisable.

5. Can F&O Expenses Be Claimed?

Eligible expenses incurred wholly and exclusively for the business may be considered, subject to the provisions of the Income-tax Act.

These may include, where applicable:

• Brokerage

• Exchange charges

• Data/subscription expenses

• Internet expenses

• Professional charges

• Other eligible business expenses

Proper supporting records should be maintained.

6. Which ITR Should an F&O Trader File?

The appropriate ITR depends on the nature of transactions, income and other facts of the taxpayer.

F&O trading is generally reported as business income, and the return should be prepared after correctly determining turnover, profit/loss and applicable audit requirements.

7. Why Professional Tax Computation Matters

F&O taxation can become complicated when you have:

Multiple brokers + F&O profit/loss + intraday trading + delivery investments + other income + carried-forward losses

A small mistake in turnover calculation can potentially affect the tax audit requirement and return filing.

Need Help With Your F&O Tax Filing?

We can help you with:

✓ F&O turnover calculation
✓ Tax audit applicability
✓ Profit/loss computation
✓ Eligible expense identification
✓ Loss carry-forward calculation
✓ ITR preparation and filing
✓ Tax planning for traders

Don't wait until the ITR filing deadline. Get your F&O transactions reviewed properly.

📞 Call / WhatsApp: 7760252581

For professional assistance with F&O taxation, audit and ITR filing, contact us today.

WHEN RERA IS APPLICABLE IN KARNATAKA

Karnataka Real Estate Guide

Who Needs RERA Registration in Karnataka?

Planning to construct apartments, villas or develop land into plots? Check whether your project needs Karnataka RERA registration before you advertise or sell.

Quick Answer

RERA registration may be required before you start marketing or selling the project.

Builders, developers and certain landowners developing property for sale should first check whether the project falls under RERA.

🏗️ Who needs RERA Registration?

RERA registration generally applies to a promoter developing a real estate project for sale.

🏢

Builders & Developers

🏠

Apartment & Villa Projects

📐

Plot / Layout Developers

🤝

JDA / Landowner Projects

📊 When is RERA Registration required?

The key exemption under RERA is based mainly on land area and number of apartments.

Land Area

500 sq.m.

Threshold for the exemption

Apartments

8 Units

Threshold for the exemption

Important: The statutory exemption applies where the land area does not exceed 500 sq. metres OR the number of apartments does not exceed eight, subject to the applicable provisions.

🔎 Simple Examples

Land	Apartments	General Position
500 sq.m.	8	Generally Exempt
600 sq.m.	8	Generally Exempt
500 sq.m.	10	Generally Exempt
600 sq.m.	10	Registration Generally Required

🌳 What about Plot / Layout Projects?

RERA is not limited to apartment projects. Development of land into plots for sale can also fall within the RERA framework.

⏱️ When should registration be obtained?

1

RERA Registration
Complete the registration before project launch activities.

2

Then Advertise
Marketing and promotional activities should follow registration.

3

Then Book / Sell
Proceed with bookings and sales in accordance with RERA.

✅ When may RERA Registration not be required?

Completed Projects

Certain projects completed before the commencement of RERA and having the required completion certificate are outside the registration requirement.

Repair / Renovation

Certain repair, renovation or redevelopment activities without new marketing, selling or allotment may be exempt.

🏗️ What about ongoing projects?

Projects that were ongoing when RERA came into force on 1 May 2017 and had not obtained the required completion certificate could also come under RERA, subject to the Karnataka RERA Rules.

📋 RERA does not end with registration

After registration, promoters may have continuing compliance requirements relating to:

📑 Project disclosures

🏦 Project bank account

📈 Quarterly updates

👨‍💼 Professional certificates

🤝 Buyer agreements

🏁 Project completion

📞

Planning a Real Estate Project?

Get your project checked for RERA applicability before advertising, booking or selling.

📞 Call 7760252581

Disclaimer: This article is for general information only. Applicability of RERA depends on the facts and structure of the project. Professional advice should be obtained before commencing marketing or sale.

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RERA REGISTRATION ALL YOU NEED TO KNOW

Who Needs RERA Registration?

Planning to develop, sell or advertise a real estate project?
Before starting your project, check whether RERA Registration is required.

Many builders and landowners are not clear about when RERA registration is compulsory. This simple guide will help you understand Who needs RERA registration, When it is required and Why it is important.

🏗️ Who Needs RERA Registration?

Generally, RERA registration is required for a real estate project when a promoter intends to:

• Develop a residential project
• Develop a commercial project
• Construct apartments or flats for sale
• Develop villas or plots for sale
• Advertise, market or sell units in a project

👉 Simple rule:
If you are developing a real estate project and selling units to buyers, you should first check whether the project requires RERA registration.

📅 When Should RERA Registration Be Taken?

RERA registration should be obtained before advertising, marketing, booking or selling the project, wherever registration is applicable.

⚠️ Do not start marketing first and think about RERA later.
Starting advertisements, accepting bookings or entering into sales without the required registration can create compliance issues and penalties.

❓ Why Is RERA Registration Required?

RERA was introduced to bring more transparency and accountability into the real estate sector.

Registration helps buyers get important information about the project, including:

• Project details
• Promoter details
• Approved plans and permissions
• Project completion details
• Details of apartments / plots being sold
• Other information required under RERA

✅ For builders: Proper RERA compliance helps avoid unnecessary notices, penalties and delays in the project.

🚨 What If RERA Registration Is Required But Not Taken?

If a project requires registration and the promoter proceeds without obtaining it, the promoter may face penalties and other regulatory consequences.

Therefore, it is better to determine the applicability before starting marketing or sales activities.

🏠 Are All Projects Covered Under RERA?

No. Certain projects may fall under exemptions depending on factors such as:

• Size of the land
• Number of apartments
• Nature of the project
• Whether the project is only for renovation or redevelopment
• Other conditions prescribed under the applicable RERA law

Important: RERA rules and exemptions can vary based on the applicable State RERA authority. So, do not rely only on a general rule before starting your project.

📋 What Should a Builder Do Before Starting?

Before advertising or accepting bookings, check these points:

• ✓ Is RERA applicable to the project?
• ✓ Is the promoter eligible to register?
• ✓ Are the required approvals and documents ready?
• ✓ Is the project information correctly prepared?
• ✓ Are the RERA disclosures and compliances properly planned?

💼 Need Help With RERA Registration?

Planning a new apartment, villa, commercial or plotted development?

Don't wait until the project is advertised or bookings start. Get the RERA applicability checked first.

We can assist with RERA registration, documentation, compliance and related advisory for real estate projects.

📞 Let's Check Your Project

Not sure whether your project requires RERA registration?
Share your project details with us. We will help you understand the registration requirement and next steps.

📞 CALL NOW 💬 WHATSAPP US

Quick consultation • RERA Registration • Documentation • Compliance

RERA Registration Real Estate Builder Compliance RERA Consultant

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