Income Tax Audit under Section 44AB | Taxgoal (2024)

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    Being a taxpayer you are required to get your books of accounts audited under the Audit rules of Income Tax Act, 1961. A tax audit is mandatory when your gross business receipts or total turnover of your business goes beyond the prescribed limit with the exception of Audit as per Income Tax. Tax Audit requires reporting and filing compliances to the tax department which is to be done every year before the provided due date for Audit Report submission. It is usually done before 30th September of the relevant Assessment Year.

    TaxGoal. assures that your business complies with all Income tax Audit Rules and Compliances. We assist our clients in a time-bound manner keeping their Income Tax Audit Compliances matched with the Accounting and Audit Standards as required by the tax department.

    Description

    Section 44AB provides for mandatory submission of an Audit report of the Business / Profession carried on by the taxpayer if the total receipts or turnover of business goes above the prescribed limit of Rs 1 Cr. (Cash Payments above 5%) /5 Cr. (Cash Payments below 5%) for Business and Rs 50 lakh for Profession in the previous year.

    The taxpayer has to get his books of accounts audited by a practicing Chartered Accountant (CA) recognized by ICAI. Non-compliance to department tax audit compliances can severely add complications to the business or can levy a huge penalty on the taxpayer which can be as high as 0.5% of the total receipts or Rs 1.5 lakh.

    TaxGoal.in being one of thebest tax audit consultants in Delhiis committed to keeping you away from all the audit penalties & legal consequences. We firmly believe in timely keeping our clients up to date with our crucial insights about tax audits, Income tax filing, and other direct and Indirect tax compliances of business to our clients.

    Services Covered

  • Book keeping – (Max – 300 Entries)
  • Preparation of Tax Audit Report ( Form 3CA, 3CB and 3CD )
  • Audit of Books of Accounts
  • Balance Sheet Preparation
  • Submission of ITR with Audit Report
  • For Whom the Plan is?

  • Individual Taxpayers / Business Owners (Sole Proprietor / Partnership firm / Limited Liability Firm / Trust ) filing taxes under the Presumptive Taxation Scheme (Section 44AD ) with Turnover above Rs 1 crore ( cash transactions above 5% ) and turnover above 5 crore ( cash transactions below 5% ).
  • Individual Professionals with business turnover above Rs 50 lakh.
  • Individuals declaring fewer profits as computed under Section 44AD, Section 44ADA, and Section 44AE.
  • Individuals / Business Owners supplying foreign services and facilities engaged in special business types provided under Section 44BB.
  • Business Owners with Huge E-Commerce Transactions (exceeding above turnover threshold).
  • Documents Required

  • Valid Mobile Number and Email of the Applicant
  • Valid PAN / Aadhaar Details of the applicant.
  • GST Registration Number and Other Proofs of Indirect Tax Payments
  • Copy of Books of Accounts ( Bills / Invoices )
  • Copy of Original and Generated Receipts
  • Financial Statements (Trading / Profit &Loss Account ) or Trial Balances
  • Bank statement of Business for the Previous Year
  • Reports of TDS Deductions, Payments to Employees, and other Capital Receipts.
  • An Income tax audit report is prepared by a practicing Chartered accountant after assessing the books of accounts of business / professional filing Form 3CA/3CB or Form 3CD as applicable under the Income-tax compliances.

    No, if your total turnover of business accounts for cash transactions is not more than 5% of turnover then the threshold for Income tax audit under Section 44AB shall be considered as Rs 5 crore.

    If the tax audit provisions are applicable and ITR is filed without audit compliances, the tax return will be considered defective and for delayed filing of the Audit report after the due date - a penalty under Section 271(b) shall be levied on the taxpayer.

    An audit report is filed by a Practising Chartered Accountant electronically on the ITR Portal. It is to be e-verified by the CA itself using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

    The due date for filing audit compliances by CA is 30th September of the relevant assessment year and for Income tax return submission with audit report for the firm, the due date is 31st October of the assessment year.

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      Income Tax Audit under Section 44AB | Taxgoal (2024)
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