The regulatory procedure, if applicable. According to the Section 44B of India’s Income Tax Act, 1961 tax audits are mandatory. It ensures that each individual who business turnover exceeds Rs 10 million within any preceding year and every individual working in a profession with gross receipts of above Rs. 5 million should have their financial accounts audited by independent chartered accountant. The provision of tax audits is applicable to everyone, be it an individual, a business organization, a partnership firm or other entity. A non-compliance with tax audit provisions could attract a penalty of 0.5% of the turnover of Rs. 100,000, whichever is lower.
Everything available under law.
It will ensure that total income and the claims for deduction are correctly and accurately entered by the businessman
Tax Audit helps proper presentation of accounts before tax authorities.This identifies the weaknesses in the accounting system and enables to suggest the improvements.
It restricts the chance of fraudulent practices.
An Audit provides assurance to shareholders that figures in the accounts show a true and fair view
Government authorities accept audited statements as true and fair for the purpose of taxation.
An Audit builds up the reputation of the company
Methodology, simplified.
The Chartered Accountant assigned for conducting tax audit of an individual or an organisation has to present the tax audit report online, using his/her official login credentials.
The taxpayer also has to mention the relevant information about their Chartered Accountant in their login platform.
Once the tax audit report is uploaded by the auditor, it has to be either accepted or rejected by the taxpayer on their login portal. If the taxpayer rejects the tax audit report, the entire process has to be repeated until the tax audit report is accepted by him/her.
Tax audit report has to be filed on or before the pre-determined due date of filing income return, i.e., 30th November of the subsequent assessment year for taxpayers who have engaged in an international transaction and 30th September of the subsequent assessment year for other taxpayers. Rules Governing Tax Audit
Passbook, IT Returns etc.
Cash book.
Journal, if the accounts are maintained according to the mercantile system of accounting.
Ledger.
Other documents relating to the profession
An accurate assistance.
Experts with vast experience
No laxity in tax audits
Well versed with the statutory procedure
Discussion and guidance on the relevant issues.
