As a taxpayer, it is your obligation to ensure that your books of accounts are audited by an independent Chartered Accountant if your turnover exceeds the prescribed limits as per The Income Tax Act, 1961. At Ahuja & Ahuja Chartered Accountants, we provide reliable and efficient tax audit services that are compliant with Section 44AB of the Income Tax Act.
Tax Audit has to be conducted by a Chartered Accountant appointed by the person itself. Tax Audit Report is given by the Chartered Accountant to the person in form 3CD prescribed under the Income Tax Act. At the time of filing of the return of income relevant data from the Tax Audit Report has to be filled in the Return of Income.
Our team of expert Chartered Accountants has over two decades of experience in the industry and is well-versed with the prevailing laws and statutes. We conduct tax audits systematically and in a time-bound manner, ensuring that all relevant disclosures are made in the specified formats.
Who is Mandatorily Subject to Tax Audit?
As per Section 44AB of the Income Tax Act, 1961, certain persons who are carrying on a business or profession are required to get their books of accounts audited by a practising Chartered Accountant. If the total amount of sales, turnover or gross receipts exceeds Rs. 1 crore in any previous year in case of business, or if the gross receipts in business exceed Rs. 50 lakhs in any previous year in case of profession, then it is compulsory to get your books of accounts audited by a Chartered Accountant.
In addition to the above-specified limits, under certain circumstances, even if the turnover is less, the books of accounts have to be audited by a practising Chartered Accountant.
Benefits of Tax Audit Services
Apart from fulfilling your legal obligations and saving your business from penalties, tax audit services also offer various benefits that can drive your organization upwards and serve your business in diversified ways. Our tax audit services will:
- Help you gain acceptance from government authorities by providing audited statements that are true and fair for taxation purposes.
- Improve your chances of getting loans and licenses for your organization.
- Enhance the reliability of your organization in the eyes of customers, suppliers, investors, employees, and tax authorities, thereby raising the trustworthiness of the organization.
- Reduce the likelihood of fraudulent activities in your organization.
- Provide concrete suggestions regarding the improvement of your business based on findings in your records.
At Ahuja & Ahuja Chartered Accountants, we understand that tax audits can be a daunting and time-consuming process for business owners. That’s why we offer comprehensive tax audit services that take the burden off your shoulders, allowing you to focus on your core business activities.
Our tax audit services cover a wide range of areas, including:
Compliance with the Income Tax Act, 1961
We ensure that your tax audit is conducted in compliance with the Income Tax Act, 1961, as well as any relevant auditing standards and guidance notes issued by the Institute of Chartered Accountants of India (ICAI).
Timely and accurate reporting
We understand the importance of timely and accurate reporting, which is why we use the latest technology and tools to conduct audits efficiently and with minimum disruption to your business. Our risk-based audit methodology ensures that we focus on areas that are critical to your business.
Our team of expert Chartered Accountants will provide concrete recommendations for improving your business based on their findings during the audit. We take a constructive approach to our audits, managing issues upfront to avoid any surprises or uncomfortable situations.
Protection from legal consequences and penalties
We are committed to protecting your business from any legal consequences or penalties that may arise from non-compliance with tax laws. Our team of experts stays up-to-date with the latest tax laws and regulations to ensure that your business is always compliant.
Why Choose Us for Tax Audit Services
if you are looking for a reliable and experienced tax audit firm in Delhi/NCR, look no further than Ahuja & Ahuja Chartered Accountants. Our team of expert and experienced Chartered Accountants has over two decades of industry experience in conducting tax audits that comply with the Income Tax Act, 1961. We believe in taking a proactive approach to our audits, which enables us to manage any issues upfront and prevent surprises or uncomfortable situations during the audit.
We use the latest technology and tools to perform our tax audits efficiently and with minimum disruption to our clients’ business operations. Our audit methodology is based on auditing standards and guidance notes issued by the Institute of Chartered Accountants of India (ICAI), which are converged with International Auditing Standards.
We work closely with our clients to gain a deep understanding of their business operations and financial systems, which enables us to identify any potential issues and provide concrete suggestions for improvements. Our goal is to help our clients comply with tax regulations while minimizing their tax liabilities.
If you are looking for an experienced tax audit firm in Delhi/NCR, Ahuja & Ahuja Chartered Accountants can meet your expectations. Contact us today to schedule a consultation with our tax audit experts.
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 is furnished when a person carrying on business or profession is already liable to get their accounts audited under any other law, for example, companies required to get the audit carried out under the Companies Act, 2013.
- Form 3CB is filed when a person carrying on business or profession is not liable to get their accounts audited under any other law.
- Form 3CD is a statement of particulars in which the auditor has to report on the various matters contained therein. Form 3CD is divided into Part A and Part B. Part A covers the basic factual details about the assessee such as their name, address, PAN, assessment year, and previous year, etc. Part B contains the particulars of various compliances under the Income Tax Act. This statement has to be furnished along with either of the audit reports mentioned above.
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 assessees 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.