Tax Audit is conducted as per the provisions of Section 44AB of the Income Tax Act, which gets applicable on a class of taxpayers. The purpose of tax audited is to ascertain whether the compliance of various provisions of the Income Tax Act and the rules made thereunder has been compiled by the assessee or not. The tax audit can be conducted by a Chartered Accountant in whole time practice. Following are the conditions which are necessarily required to be fulfilled.
Applicability of tax audit: Following persons are compulsorily required to get their account under Section 44AB of the Income Tax Act and to file the tax audit report in form No. 3CA/3CB and 3CD. Before 30th September after the end of the financial year.
1. A person carrying on business whose turnover or gross receipt during the financial year exceeds Rs.2 crore. For this purpose the meaning turnover includes Profit on sale of Export License/Duty Drawback/Cash Assistance, Gross interest income received by Money lender, Exchange rate difference on export sales, Advance received & forfeited from customers, where excise duty is included in turnover, the corresponding amount should be distinctly shown as debit item in the profit and loss account. However, it does not include Sale/Purchase of Fixed Assets, Sale Proceeds of Assets
2. A person carrying on
The due date within which the tax audit report must be filed with the income tax department is before 30th September of the relevant assessment year. However, in case the taxpayer is engaged in
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