TAX AUDIT
As a taxpayer, it is your responsibility to ensure that your financial records are audited by an independent Chartered Accountant if your turnover surpasses the limits set by The Income Tax Act, 1961. At Aakash Seth & Associates Chartered Accountants, we offer trustworthy and efficient tax audit services that comply with Section 44AB of the Income Tax Act.
The tax audit must be carried out by a Chartered Accountant appointed by the taxpayer. The Chartered Accountant then provides the Tax Audit Report in Form 3CD, as prescribed by the Income Tax Act. When filing the income tax return, the relevant details from the Tax Audit Report must be included.
Our team of skilled Accountants are highly knowledgeable about current laws and regulations. We conduct tax audits in a methodical and timely manner, ensuring that all required disclosures are made in the proper formats.
Who is Mandatorily Subject to Tax Audit?
According to Section 44AB of the Income Tax Act, 1961, individuals engaged in business or profession must have their financial records audited by a practicing Chartered Accountant if their sales, turnover, or gross receipts exceed Rs. 1 crore in any financial year for businesses, or if the gross receipts in a profession exceed Rs. 50 lakhs in a given year. In such cases, a Chartered Accountant must audit the books of accounts.
Additionally, even if the turnover is below the specified thresholds, there are certain situations where a Chartered Accountant must still audit the books of accounts.
Benefits of Tax Audit Services
- Gain government recognition: We ensure precise and transparent financial reporting, facilitating recognition from government authorities and enhancing your business’s reputation.
- Enhance loan and licensing prospects: Our tax audit services provide a seal of approval, increasing your likelihood of securing loans and licenses to expand your business.
- Strengthen credibility and trust: By demonstrating transparency and accountability, we help strengthen your credibility and trust among stakeholders, including customers, suppliers, investors, employees, and tax authorities.
- Reduce risk of internal fraud: Our tax audit services include a thorough examination of your financial records, helping to identify and mitigate potential risks of internal fraud and mismanagement.
- Gain actionable advice for business improvement: Based on insights from your financial records, we provide valuable recommendations for improving your business operations, optimizing processes, and increasing profitability.
At Aakash Seth & Associates Chartered Accountants, we understand that tax audits can be complex, time-consuming, and daunting for business owners. That’s why we provide comprehensive tax audit services designed to:
- Simplify the audit process
- Minimize disruptions to your business operations
- Ensure accuracy and transparency in financial reporting
- Provide actionable insights for business improvement
By partnering with us, you can rest assured that your tax audit is in good hands, allowing you to focus on what matters most – driving business growth and success.
Our Tax Audit Services Cover:
- Compliance with the Income Tax Act, 1961: We ensure that your tax audit adheres to the Income Tax Act, 1961, as well as the relevant auditing standards and guidelines set by the Institute of Chartered Accountants of India (ICAI).
- Timely and Accurate Reporting: We recognize the importance of delivering reports on time and with precision. Using advanced technology and tools, we conduct audits efficiently with minimal disruption to your business. Our risk-based audit approach ensures that we concentrate on the most critical areas for your company.
- Expert Recommendations: Our team of skilled Accountants provides actionable recommendations to enhance your business based on their audit findings. We adopt a proactive and constructive audit approach, addressing potential issues early on to prevent any unexpected complications or challenges.
- Protection from Legal Consequences and Penalties: We are dedicated to safeguarding your business from legal repercussions or penalties related to non-compliance with tax regulations. Our experts stay informed about the latest tax laws and regulations to ensure your business remains fully compliant.
Why Choose Us for Tax Audit Services
For a trustworthy and seasoned tax audit firm in Delhi/NCR, consider Aakash Seth & Associates Chartered Accountants. Our team of seasoned Accountants boasts over years of experience in conducting tax audits that adhere to the Income Tax Act, 1961. We adopt a proactive approach to our audits, identifying and addressing potential issues upfront to prevent surprises.
We leverage cutting-edge technology and tools to ensure efficient and minimally disruptive audits. Our methodology aligns with auditing standards and guidance notes issued by the Institute of Chartered Accountants of India (ICAI), conforming to International Auditing Standards. Through close collaboration with clients, we gain in-depth insights into their business operations and financial systems. This enables us to pinpoint potential issues and offer actionable suggestions for improvement. Our ultimate goal is to facilitate tax compliance while minimizing liabilities. For expert tax audit services in Delhi/NCR, rely on Aakash Seth & Associates Chartered Accountants. Schedule a consultation with our tax audit specialists today.
FAQs on Tax Audit
What is the penalty for not getting the accounts audited as required by section 44AB?
If a person who is supposed to get the tax audit carried out fails to get their accounts audited under section 44AB, they will have to pay a penalty of an amount lower of the following two amounts:
- 0.5% of the sales, total turnover or gross receipts during the relevant previous year
- Rs. 1,50,000
Is tax audit always applicable once it is applicable for a year?
No, tax audit applicability is ascertained with reference to each previous year. It is not necessary that tax audit applicable for one year will be applicable for all the subsequent years.
What are Forms 3CA, 3CB & 3CD?
- Form 3CA: Furnished when a person carrying on business or profession is already liable to get their accounts audited under any other law.
- Form 3CB: Filed when a person carrying on business or profession is not liable to get their accounts audited under any other law.
- Form 3CD: A statement of particulars in which the auditor has to report on various matters contained therein.
Can professionals also avail the benefit of the enhanced turnover limit of Rs. 10 crores for the tax audit?
No, the persons engaged in a profession are not entitled to avail an extended turnover limit of Rs. 10 crores for tax audit in the case of digital transactions. This benefit is available only to the assessee carrying on a business.
What is the due date for filing the Tax Audit report?
The due date for filing the Tax Audit report is 30th September following the relevant financial year. For example, the Tax Audit report for the Financial Year 2022-23 should be filed on or before 30th September 2023.