TAX AUDIT AND ITS APPLICABILITY
MEANING Before understanding what is Tax Audit In India, let us understand the meaning of the term “Audit”. Audit is the examination or inspection of various books of accounts by an Auditor and It is done to ascertain the accuracy of financial statements provided by the organization. There are various kinds of audits conducted under different laws like Company Audit, Cost Audit etc. In the same way, The Income Tax Law also requires an audit called Tax Audit. Section 44AB contains the provision s for the Tax Auditor In Delhi of a Tax-paying entity.
OBJECTIVES OF TAX AUDIT
. A proper Statutory Auditor In India for tax purposes would ensure that the books of account and other records are properly maintained. . Such an Auditor In Delhi would also help in checking fraudulent practices. . It can also facilitate the administration of tax laws by a proper presentation of accounts before the tax authorities. . It can save the time of Assessing Officers in carrying out routine verifications, like checking the correctness of totals and verification of sales and purchases. Etc.
Who is Mandatorily Subject to Tax Audit? A Taxpayer is required to have a Tax Auditor In India carried out if the Sales, Turnover or Gross Receipts of Business exceed Rs 1 crore in the financial year . However, a Taxpayer may be required to get thei r accounts audited in certain other circumstances. The following persons have to get their accounts audited: . Every person carrying on Business, if his Total Sales, Turnover or Gross
Receipts in
Business exceeds Rs 1 crore during the previous year. . Every person carrying on Profession, if his Gross Receipts in Profession exceeds Rs 50 lacs during the previous year. . If income of any person is to be computed under Section 44AD or 44ADA or 44AE on Presumptive Basis but such person has rejected presumptive income, in such cases, such person shall be required to get their accounts Auditor In India . Every person carrying on business, if his Total Sales, Turnover or Gross Receipts in business exceeds Rs 10 crore during the previous year, provided that, whose: 1. Aggregate of all amounts received including amount received for sales, turnover or gross receipts during the previous year, in cash, does not exceed 5% of the said amount and,
2. Aggregate of all payments made including amount incurred for expenditure, in cash, during the previous year does not exceed 5% of the said amount. This section shall not apply to the person, who declares profits and gains for the previous year in accordance with the provisions of Section 44AD and his total sales, turnover or gross receipts, as the case may be, in business does not exceed Rs 2 crore in such previous year.
Penalty of Non-Filing or Delay in filing Tax Audit Report If any taxpayer, who is required to get the Tax Auditor In Delhi done but fails to do so, the least of the following may be levied as a penalty: . 0.5% of the total sales, turnover or gross receipts . Rs 1,50,000
AUDITING & ASSURANCE SERVICES IN DELHI, INDIA GK Kedia and co is one of the top Statutory Auditor In Delhi companies in India for Tax Auditor In India . We make sure that each and every process is dealt with ease. If yo u are looking for the best Tax Auditing service, then G.K. Kedia and Co., Chartered Accountants In Delhi is the perfect spot.
For further information visit our website: - https://gkkediaandco.com/ CONTACT US: +918826897201
Our Social Media Links Facebook : https://www.facebook.com/gkkediaandco/ Twitter
: https://twitter.com/gkkediadelhi
: https://www.linkedin.com/in/gkkedia
YouTube
: https://www.youtube.com/channel/UCjtHdaR6oCERW61rY2n0AoQ