TMI BlogIncome Tax Aduit under Income Tax Act,1961X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Aduit under Income Tax Act,1961 - By: - Sparsh wadhwa - Income Tax - Dated:- 22-9-2023 - Tax Audit The provisions relating to tax audit are provided under Section 44AB of the Income Tax Act . According to Section 44AB , a tax audit is required for the following persons: Business In case of a business, tax audit would be required if the total sales turnover or gross receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the business exceeds Rs.1 crore in any previous year. Under the Income Tax Act, Business simply means any economic activity carried on for earning profits. Section 2(3) has defined the business as any trade, commerce, manufacturing activity or any adventure or concern in the nature of trade, commerce and manufacture . Profession In case of a profession or professional, tax audit wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be required if gross receipts in the profession exceed Rs.50 lakhs during the financial year. A profession or professional could be any of the following as per Rule 6F of the Income Tax Rules, 1962 : Architect Accountant Authorised representative Engineer Film Artist Actor, Cameraman, Director, Music Director, Editor, and so on Interior Decorator Legal Professional Advocate or La ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wyer Medical Professional Doctor, Physiotherapist, or Nursing and Paramedical Staff Technical Consultant Presumptive Taxation Scheme If a person is enrolled under the presumptive taxation scheme under section 44AD and total sales or turnover is more than Rs. 2 crores, then tax audit would be required. Also, any person enrolled under the presumptive taxation scheme who claims tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the profits of the business are lower than the profits calculated in accordance with the presumptive taxation scheme would be required to obtain a tax audit report. Due Date for Filing Tax Audit Report The due date for completing and filing tax audit report under section 44AB of Income Tax Act is 30th September of the assessment year. Hence, if a taxpayer is required to obtain a tax au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit, then the assessee would be required to file the income tax return on or before 30th September along with the tax audit report. In case the taxpayer is also liable for transfer pricing audit, then the due date for filing tax audit is 30th November of the assessment year. Form 3CA 3CD Any person who is required to get a tax audit would be required to furnish the following for tax au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit while filing an income tax return: Form 3CA Audit Form Form 3CD Statement showing relevant particulars Penalty for Completing Tax Audit If a taxpayer who is required to obtain tax audit does not get the accounts audited, then penalty could be levied under Section 271B of the Income Tax Act. The penalty for not completing tax audit is 0.5% of the turnover or gross receipts, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subject to a maximum of Rs.1,50,000. - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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