Tax Audit
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What is Tax Audit?
It is a kind of certification obtained from a practicing Chartered Accountant to ensure that the books of accounts of the taxpayer are in conformity with the tax law. It employs a systematic and regulatory approach to verify the genuineness of transactions appearing in the accounting records of the taxpayer.
It is carried out in the form of annual filing of Form 3CA/ 3CB and 3CD under which a Chartered Accountant validates the income disclosed by the taxpayer and expresses his qualifications. A tax audit, thus, certifies the entire income structure of the assessee from the point of view of Income Tax Act, 1961.
Who is required to undergo Tax Audit?
Any assessee whose income exceeds the applicable threshold limit needs to get his accounts audited by a Chartered Accountant under Section 44AB of Income Tax Act, 1961. Earlier, this limit was Rs. 1 crore for businesses and Rs. 50 lacs for other professionals. However, this limit has been revised to Rs. 5 crores w.e.f. FY 2019-20 and Rs. 10 crores from FY 2021-22, subject to certain terms and conditions.
Penalty for Non- Compliance
The tax department imposes heavy penalty for not getting accounts audited under Income Tax Act. Penalty amounts to lower of:
- 0.5% of the total sales, gross receipts or turnover.
- INR 1,50,000/-
Benefits of Tax Audit
- Audited statement of accounts is generally demanded by banks and other financial institutions before extending loans to taxpayers. Thus, getting accounts audited under tax law helps in faster approval of loans.
- When the books are audited, the chances of getting caught in tax scrutinies and assessments becomes lesser. Even if caught, the tax authorities place more reliance upon audited accounts, than non-audited accounts.
- Audit boosts credibility of your brand and help you getting more business opportunities.
What Aplite Offers?
From the submission of your papers for audit to the tax computation, whether it’s TDS returns or refund status, to the maintenance of all your account copies, Aplite does it all.
We have a team of highly-skilled personnel who possess rich experience in taxes and allied fields. We always strive hard to keep the faith, that our client places in us, intact with our exceptional services.
Aplite stands tall on the pillars of knowledge, transparency, ethics and customer satisfaction, all of which lets us provide our clients with greater results and success.
Services provided under Tax Audit
- Conducting audit under Section 44AB of the Act and filing certifications under Form 3CA/ 3CB and 3CD.
- Filing of Income Tax Returns.
- Preparation of Financials.
- Reconciliation between income as per books and as per tax audit.
- Filing of related certificates and forms.
- Tax Audit advisory.