Tax audit is an examination/review of accounts of any business /profession carried out by the taxpayer from an income tax viewpoint. A Tax audit makes the process of income computation for filing of return of income, much easier.
Following categories of taxpayers are required to get tax audit done: Category of person Threshold Carrying on business (not opting for presumptive taxation scheme*) Total sales, turnover or gross receipts exceed Rs 1 crore Carrying on business (opting presumptive taxation scheme under section 44AD ) Declares taxable income below the limits prescribed under the presumptive tax scheme and has income exceeding the basic threshold limit Carrying on profession Gross receipts exceed Rs 50 lakhs Carrying on the profession eligible for presumptive taxation under Section 44ADA Claims profits or gains lower than the prescribed limit under presumptive taxation scheme and income exceeds maximum amount not chargeable to tax Carrying on the business and is not eligible to claim presumptive taxation under Section 44AD due to opting for presumptive taxation in one tax year and not opting for presumptive tax for any of the the subsequent 5 consecutive years If income exceeds maximum amount not chargeable to tax in the subsequent 5 consecutive tax years from the tax year where presumptive taxation is not opted for
What is the due date of tax audit ?
Particulars Due Date Company 30th day of September of the assessment year Other than company whose accounts are required to be audited under this act 30th day of September of the assessment year An assesse who is required to furnish a report referred to in section 92E 30th day of November of the assessment year
What is the penalty for non-compliance?
If any taxpayer who is required to get tax audit done but fails to do so, lower of 0.5% of total sales, turnover or gross receipts or Rs 1,50,000 may be levied as penalty. However, if reasonable cause is established for non-compliance, no penalty would be imposed.
Service Tax Returns
Verification and checking the compliance
Discuss with the client
Finalization of Balance Sheet
Finalize the balance sheet and audit report
Income Tax Return
Fill the ITR and tax audit form 3CA/3CB and 3CD
Verification from client income tax portal