Tax Audit Process
- Step 1
Enter details & get a call back from us to fix an appointment
- Step 2
Visit our office for tax consultation with our tax expert.
- Step 3
Get a customised quote depending on your tax profile
- Step 4
Pay fees to get your return diligently prepared & filed by our expert
Frequently Asked Questions
Tax Audit is mandatory under section 44AB of the Income Tax Act, 1961. Every person carrying on business whose total sales or turnover exceeds Rs. 2 Crore and by a person carrying on profession and his gross receipts from profession exceed Rs. 50 Lakhs in the previous year, is liable to get his Tax Audit done by a Chartered Accountant mandatorily.
Persons like company or co-operative society are required to get their accounts audited under their respective law. Section 44AB provides that, if a person is required by or under any other law to get his accounts audited, then he need not again get his accounts audited to comply with the requirement of section 44AB. Is such a case, it shall be sufficient if such person gets the accounts of such business or profession audited under such law and obtains the report of the audit as required under such other law and also a report by the chartered accountant in the form prescribed under section 44AB, i.e., Form No. 3CA and Form 3CD.
A person covered by section 44AB should get his accounts audited and should obtain the audit report on or before the due date of filing of the return of income, i.e., on or before 30th September (*) of the relevant assessment year, e.g., Tax audit report for the financial year 2017-18 corresponding to the assessment year 2018-19 should be obtained on or before 30th September, 2018.
According to section 271B, if any person who is required to comply with section 44AB fails to get his accounts audited in respect of any year or years as required under section 44AB, the Assessing Officer may impose a penalty. The penalty shall be lower of the following amounts:
(a) 0.5% of the total sales, turnover or gross receipts, as the case may be, in business, or of the gross receipts in profession, in such year or years.
(b) Rs. 1,50,000.
However, according to section 273B, no penalty shall be imposed if reasonable cause for such failure is proved.