Explain the provision relating to tax audit
Answers
Answered by
0
1. Applicability:
Assessee carrying on any business where Total Sales or Turnover or Gross receipts exceeds Rs.60 lakhs.
Assessee carrying on profession where gross receipts exceeds Rs.15 lakhs.
Assessee carrying on business referred to u/s 44AD/AE/AF/BB/BBB and declaring lower income than prescribed
2. Audit: The audit shall be conducted by an accountant as explained u/s 288 of the Income Tax Act.
3. Specified date for filing of report: September 30th of relevant assessment year.
Other points:
Turnover: Turnover or receipts considered for declaration of presumptive income u/s 44AD/AE/AF shall not be considered for determining the prescribed turnover limit u/s 44AB.
Agents: In case of agents, this section is applicable only if the gross commission exceeds Rs.40,00,000.
Shipping business and operating aircrafts: This section does not apply to persons who derived income referred u/s 44BBA and 44B.
5. Consequences of non-compliance:
Defective return: If the audit report obtained u/s 44AB is not filed along with the return of income then the assessing officer may treat the return as defective return.
Penalty u/s 271B: Failure-
To get accounts audited
To obtain an audit report as required u/s 44AB
To furnish the said report before the due date, then the assessee is liable to pay a penalty @ 0.5% of the gross turnover or receipts or Rs.1,00,000 whichever is less, subject to section 273B.
Situations considered as reasonable cause for non-filing of Audit Report u/s 44AB :
Resignation of tax auditor
Bona fide interpretation of the term ‘Turnover’ based on expert advice
Death or Physical inability of the partner in charge of accounts
Labour problems such as strike, lock out for a long period
Loss of books of accounts by theft, fire etc. beyond the control of the assessee
Non-availability of accounts on account of seizure
Natural calamities, commotion etc.
Assessee carrying on any business where Total Sales or Turnover or Gross receipts exceeds Rs.60 lakhs.
Assessee carrying on profession where gross receipts exceeds Rs.15 lakhs.
Assessee carrying on business referred to u/s 44AD/AE/AF/BB/BBB and declaring lower income than prescribed
2. Audit: The audit shall be conducted by an accountant as explained u/s 288 of the Income Tax Act.
3. Specified date for filing of report: September 30th of relevant assessment year.
Other points:
Turnover: Turnover or receipts considered for declaration of presumptive income u/s 44AD/AE/AF shall not be considered for determining the prescribed turnover limit u/s 44AB.
Agents: In case of agents, this section is applicable only if the gross commission exceeds Rs.40,00,000.
Shipping business and operating aircrafts: This section does not apply to persons who derived income referred u/s 44BBA and 44B.
5. Consequences of non-compliance:
Defective return: If the audit report obtained u/s 44AB is not filed along with the return of income then the assessing officer may treat the return as defective return.
Penalty u/s 271B: Failure-
To get accounts audited
To obtain an audit report as required u/s 44AB
To furnish the said report before the due date, then the assessee is liable to pay a penalty @ 0.5% of the gross turnover or receipts or Rs.1,00,000 whichever is less, subject to section 273B.
Situations considered as reasonable cause for non-filing of Audit Report u/s 44AB :
Resignation of tax auditor
Bona fide interpretation of the term ‘Turnover’ based on expert advice
Death or Physical inability of the partner in charge of accounts
Labour problems such as strike, lock out for a long period
Loss of books of accounts by theft, fire etc. beyond the control of the assessee
Non-availability of accounts on account of seizure
Natural calamities, commotion etc.
Similar questions