What is the difference between a statutory and a tax audit?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerA statutory audit is required under the Companies Act for all companies and reports on the truth and fairness of the financial statements. A tax audit is required under the Income-tax Act (Section 44AB) above turnover thresholds and reports tax-specific particulars. A company over the limit needs both.

Different laws, different purpose

Statutory = Companies Act, truth-and-fairness. Tax = Income-tax Act, tax compliance particulars (Form 3CD).

You may need both

A company over the 44AB limit files a statutory audit and a tax audit; the tax audit then uses Form 3CA (since already audited).

Audit

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This answer is general information for businesses, not professional advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.