A Tax Audit is an examination of the books of accounts of a taxpayer conducted as per the provisions of the Income Tax Act, 1961. It is mandatory for businesses and professionals who exceed certain turnover limits. The purpose of the audit is to ensure that the taxpayer has maintained proper records and complied with various income tax provisions.
At India Accountant, we offer expert Tax Audit services for businesses, professionals, and firms across India.
When is Tax Audit Required?
As per Section 44AB of the Income Tax Act, a tax audit is mandatory in the following cases:
For Businesses:
- If turnover exceeds ₹1 crore in a financial year
- If opting for presumptive taxation under Section 44AD and turnover exceeds ₹2 crore
For Professionals:
- If gross receipts exceed ₹50 lakh in a financial year
Objectives of Tax Audit
- Ensure proper maintenance of books of accounts
- Report accurate income, expenses, and tax liabilities
- Detect fraud, errors, or discrepancies
- File audit report in Form 3CA/3CB and 3CD
- Avoid penalties under Section 271B
Documents Required
- PAN and Aadhaar of the business/proprietor
- Books of accounts (cash book, ledger, sales register, purchase register, etc.)
- Bank statements
- Details of fixed assets, loans, and investments
- Tax payment challans and TDS details
Penalty for Not Conducting Tax Audit
If a person required to get their accounts audited fails to do so, they may face a penalty of 0.5% of turnover or ₹1,50,000, whichever is lower.
Why Choose India Accountant?
- Qualified Chartered Accountants and tax professionals
- Detailed audit as per income tax guidelines
- Accurate reporting to avoid tax scrutiny
- Timely filing to avoid penalties
- End-to-end support and advisory
Contact Us for Tax Audit Services
Ensure smooth compliance and professional handling of your tax audit today.
Email: info@indianaccountant.in
Phone: 917310106210
Website: www.indianaccountant.in
India Accountant – Trusted Experts for Tax Audits & Compliance.