The third proviso to Section 44AB says that where a person is already required to get accounts audited under another law, that audit counts for Section 44AB, provided the accounts are audited under that law before the specified date and the person furnishes, by that date, the other-law audit report together with a further report by an accountant in the prescribed form. That further report is Form 3CA with Form 3CD. The proviso decides which form you file. It does not, by itself, decide whether a tax audit applies.
If you are at the Clause 8 dropdown in Form 3CD right now, start here:
| Your question | Use this |
|---|---|
| Does a tax audit apply at all, and under which clause? | Section 44AB applicability checker |
| Which of 44AB(a) to (e) do I select? | 44AB(a), (b), (c), (d) or (e): which clause applies |
| Form 3CA or Form 3CB? | Form 3CA, 3CB and 3CD explained |
| What happens if the report is late? | Tax audit late filing penalty calculator |
What the third proviso actually says
Section 44AB lists the situations in which accounts must be audited: clauses (a) to (e). After those clauses come the provisos. The third one deals with a person who is "required by or under any other law to get his accounts audited".
For that person it is sufficient compliance with Section 44AB if three things happen:
- The accounts are audited under the other law before the specified date.
- The audit report under that other law is furnished by that date.
- A further report by an accountant, in the form prescribed under Section 44AB, is furnished by that date.
The proviso avoids a second full audit of the same books. The tax auditor relies on the audited financial statements and reports the tax particulars on top of them.
Who is "audited under any other law"?
The other law must itself require the audit. Common cases:
| Entity | Other law that requires the audit |
|---|---|
| Company | Companies Act, 2013 |
| LLP above the audit limits | LLP Act and Rules (turnover above ₹40 lakh or contribution above ₹25 lakh) |
| Co-operative society | The State Co-operative Societies Act or the Multi-State Co-operative Societies Act |
| Public trust registered under a State trusts law | That State law, where it requires an audit |
| Bank, insurer, electricity company | The governing statute |
Two points trip people up.
A small LLP. An LLP below both LLP-Act limits is not required by that law to be audited. If its turnover still attracts Section 44AB, the report is Form 3CB, not Form 3CA. You can test the limits with the LLP audit applicability checker.
An audit the firm chose to have. A partnership firm or proprietor that gets books audited voluntarily, or because a bank asked for it, is not "required by or under any other law". That is Form 3CB territory.
What to select in Clause 8 of Form 3CD
Clause 8 asks for the relevant clause of Section 44AB under which the audit has been conducted. The utility's list includes the five clauses, the proviso to clause (a) for the ₹10 crore limit, and an entry for the third proviso, "audited under any other law".
Keep two conclusions on file, because they answer different questions:
- The trigger. Which of clauses (a) to (e) makes the audit applicable? A company with turnover of ₹6 crore and cash receipts above 5% is caught by clause (a). A company with turnover of ₹14 crore and both cash tests met is caught by the proviso to clause (a), "turnover above ₹10 crore".
- The report package. Because the accounts are audited under the Companies Act, the report is Form 3CA, which is what the third proviso provides for.
Where the utility lets you record the other-law audit alongside the triggering clause, record both. Where it accepts a single selection, follow the current utility instructions and the Department's FAQ, and note in the working paper why that selection was made. We have not tested the current utility's behaviour for every entity type, so check it on the form you are filing.
A company is not automatically "third proviso" and nothing else. If no clause of Section 44AB is attracted, there is no tax audit to report, whatever other audit the company has had.
Form 3CA or Form 3CB
| Form 3CA | Form 3CB | |
|---|---|---|
| When | Accounts are required to be audited under another law | No other-law audit requirement |
| What the accountant reports | That the statutory audit was conducted, with the audited financial statements annexed, and the Form 3CD particulars | An audit report on the accounts, and the Form 3CD particulars |
| Typical entities | Companies, audited LLPs, co-operative societies | Proprietors, partnership firms, small LLPs |
| Statement of particulars | Form 3CD | Form 3CD |
Form 3CD is the same in both. Only the covering report changes.
The date condition
The proviso works only if the other-law audit is finished before the specified date. The specified date is one month before the due date of the return under Section 139(1).
For AY 2026-27, CBDT is reported to have extended the specified date from 30 September 2026 to 21 October 2026 by a press release of 28 September 2026. Transfer pricing cases are reported as not covered by the extension. Read the circular before relying on either date. The due date finder keeps the dates for each entity type in one place.
If the statutory audit will not be complete by the specified date, the three conditions of the proviso cannot be met on time. Do not switch to Form 3CB to get around that without reading the ICAI Guidance Note on Tax Audit on the point; the choice of form follows the legal requirement to be audited, not the status of the audit.
Three mistakes seen at review
- Selecting only "audited under any other law" for a company with no trigger recorded. The file then has a report form but no reason for the tax audit.
- Using Form 3CB for an LLP that crossed the LLP-Act limits. Once the LLP Act requires the audit, the report is Form 3CA.
- Treating a voluntary or lender-driven audit as an other-law audit. The proviso needs a legal requirement.
What changes from FY 2026-27
FY 2025-26 (AY 2026-27) is the last year under Section 44AB and Forms 3CA, 3CB and 3CD. For tax year 2026-27 the audit requirement sits in Section 63 of the Income-tax Act, 2025 and the report is Form 26, first filed in the 2027 season. The Form 3CD to Form 26 clause mapper shows where each clause moves. Check the notified form before relying on any mapping.
Frequently asked questions
What is the third proviso to Section 44AB?
It is the provision that treats an audit required under another law as sufficient for Section 44AB, as long as that audit is completed before the specified date and the other-law audit report is furnished with a further report by an accountant in the prescribed form, which is Form 3CA with Form 3CD.
When should I select "third proviso to Section 44AB: audited under any other law" in Form 3CA for AY 2026-27?
When the entity's accounts are required to be audited under another law, such as a company under the Companies Act or an LLP above the LLP-Act limits. Also record the clause of Section 44AB that makes the tax audit applicable, and follow the current utility instructions on how many selections it accepts.
Is a company always covered by the third proviso?
A company's accounts are always audited under the Companies Act, so its tax audit report is always Form 3CA. But the tax audit applies only if one of clauses (a) to (e) of Section 44AB is attracted.
Does an LLP file Form 3CA or Form 3CB?
Form 3CA if the LLP Act requires its accounts to be audited, which is the case when turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh. Form 3CB if it is below both limits and the tax audit applies only because of Section 44AB.
What does "proviso to clause (a) satisfied and turnover above ₹10 crore" mean?
It is the Clause 8 option for a business whose cash receipts and cash payments are each within 5% of the totals, so the higher ₹10 crore limit applies, and whose turnover is above that limit. It is a trigger under clause (a), separate from the third proviso.
Sources
- Section 44AB, Income-tax Act, 1961, including the provisos.
- Forms 3CA, 3CB and 3CD under Rule 6G of the Income-tax Rules, 1962.
- Income Tax Department FAQ on Form 3CB-3CD.
- ICAI Guidance Note on Tax Audit under Section 44AB.