Chartered Accountant · ICAI M.No. 153926 · FRN 136869W · Reviewed on 13 October 2026
What the section 81 audit covers
This is a statutory audit of the society’s books — maintenance billing and collection, repair and sinking funds, investments, contracts awarded, member dues — ending in an audit classification (A/B/C/D) that follows the society into bank facilities, redevelopment negotiations and Registrar dealings. The auditor also reports irregularities; serious ones can trigger rectification reports (Form O) and Registrar follow-up.
The calendar that keeps you compliant
Books closed at 31 March; audit completed in the following four months; AGM (by 30 September) adopts the audited accounts and appoints the panel auditor for the next year, with the appointment intimated to the Registrar online; the audit report is uploaded and the rectification of remarks filed in time. Miss the appointment and the Registrar can appoint an auditor for you — at the society’s cost and on the Registrar’s choice.
Beyond section 81: where income-tax enters
The co-operative audit does not replace income-tax filings: the society files ITR-5 every year, with interest income and non-member receipts taxed as discussed in the interest-income answer. An income-tax audit under section 44AB is rare for societies (it needs business-level receipts), but TDS obligations — contractor payments, security agencies — arrive much earlier than committees expect. Our society audit practice holds panel empanelment and runs both calendars together.