Tax Audit
Introduction
If you are a taxpayer and turnover of your business
or total receipts from any profession exceeds limits as prescribed
by The Income Tax Act, in any previous year then, you are obligated
to get your books of accounts audited by an Independent Chartered
Accountant. The Tax Audit report shall be prepared as per Section
44AB of the Income Tax Act, 1961. The due date for the submission
of the Tax Audit report is 30th September of Assessment Year.
The entire procedure of the tax audit is to ensure
that the Income Tax compliances & other relevant laws are
appropriately being adhered.
A tax audit endeavours to verify the books of accounts
of the assessee to ensure that the compliances mandated by
the Income Tax Law are adequately obeyed.
Thus, following the prevailing laws and statutes,
we conduct the tax audit and make the relevant disclosures
in the specified formats. Our Tax Audit team is well-experienced
and qualified to handle Tax Audit systematically in a time-bound
manner.
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Who is mandatorily subject to the Tax Audit?
Section 44AB of Income Tax Act, 1961 states that
certain persons are carrying on the business or profession,
have to get their books of accounts audited by a practising
Chartered Accountant (CA).
BUSINESS
In case of any business, if the total amount of sales,
turnover or the gross receipts exceed(s) Rs. 1 crore in any
previous year.
Provided that if the aggregate of all receipts & payments
in cash during the previous year does not exceed 5% of such
receipts & payments. The limit of "Rs. 1 crore" will be
substituted by "Rs.5 crore". The revised limits of 5 crore
are applicable from Assessment Year 2021-22.
PROFESSION
In the case of the profession, if the gross receipts
in business exceed Rs. 50 lakhs in any previous year;
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Aforesaid are imperatively and compulsorily required
to get their books of accounts audited by a Chartered Accountant.
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Apart from this, under particular circumstances,
even if the turnover is less than the above-specified limits,
the books of accounts have to get audited by a practising CA.
The applicable entities have to get their books of
accounts audited by a CA before the date specified and furnish
the report of such audit.
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How Can Tax Audit Be Beneficial for Your Organization?
Apart from the fact that tax audit will save your
business from legal compliances and penalties. It also has
various benefits that can drive your organization upwards & serve
your business in diversified ways, such as:
- Government authorities accept audited statements as true & fair for the purpose of taxation. It will help you in getting loans and licences for your organization.
- Adds reliability to your organization for customers, suppliers, investors, employees & tax authorities. It raises the trustworthiness of the organization.
- It will reduce the chances of fraudulent activities in your organization.
- We, Manish Anil Gupta & co, will give you concrete suggestions regarding improvements of business based on findings in your records.
 The least of following may be levied as a penalty:-
- 0.5% of the total sales, gross receipts or turnover.
- Rs. 1,50,000.
