Everything about Tax Audit in India

1
Tax Audit

• Hassle Free Tax Compliance.

2
Know about Tax Audit

• The simplest meaning of Tax Audit is an
  examination of your tax return by an IRS (Indian
  Revenue Service) officer. An IRS officer will
  verify your income and also verify the deduction
  in profit that it is accurate or not. For
  example, some taxpayers may keep their cash
  income confidential that may lead to tax
  penalties. This topic is covered under section
  44AB of The Income Tax Act, 1961.

3
Objectives of Tax Audit in India

• These are the various objectives
• An analysis of the accuracy of income tax
  returns.
• It checks the malpractice and fraud in filing
  income tax returns.
• It ensures proper maintenance and correctness of
  accounts by the tax auditor.
• It practices the mythological examination of
  accounts.

4
Who is covered by Tax Audit in India?

• These are certain classes
• A business owner with gross receipts, turnover
  or total sales exceeding Rs. 1 cr.
• An owner who has opted for the taxation scheme
  with the receipt, turnover or total sales
  exceeding Rs. 2crores or more.
• A taxpayer whose business is eligible for
  taxation and claims the profits that is lesser
  than the prescribed limit under the taxation
  scheme.
• The owner who has qualifies the presumptive
  taxation scheme but decided to opt out after a
  specific period. Then he or she will lose the
  ability to revert to the likely taxation scheme
  for the term of five years of assessment.
• A professional employee i.e. engaged in any
  profession and his or her gross receipts in a
  year are of Rs. 50 L and above.
• An employee of an organization who is eligible
  for paying tax and he or she claims the profit
  that is less than the prescribed limit under the
  taxation scheme.

5
Why do Taxpayers Receive Tax Audit Penalty?

• There are different reasons for receiving tax
  penalty
• Citizens ignore the rules and the regulations
  prescribed by the IRS.
• A person who keeps his or her tax payment
  underreported.
• Misstate the value of his or her property by an
  individual.
• A citizen fails to pay the tax by the deadline.
• A person keeps confidential the gift or the
  estate.
• The business owner who keeps the other
  reportable transactions underreported.

6
What is the process for filing the Tax Audit
report?

• Here is the procedure
• The C.A. (Chartered Accountant) hired for
  conducting the audit of an individual or the
  organization to present the tax audit report
  online using his or her official login
  credentials.
• The taxpayer has to mention the relevant
  information of the C.A. in their login platform.
• Once the audit report uploaded by the auditor,
  it has to either accepted or rejected by the
  taxpayer on their login platform. If the taxpayer
  rejected the audit report, then the entire story
  has to be repeated until he or she accept the
  audit report.
• The report of the income return has to be filed
  before 30th November because it is an assessment
  year of the taxpayer and 30th September for other
  taxpayers.