Online Tax Audit Service
- Verification of Financial Statements:
A tax audit ensures that a business’s financial statements are accurate, reflecting true income, expenses, and profits for the relevant tax year.
- Compliance with Tax Laws:
It checks that all tax-related laws and regulations, such as income tax provisions, have been adhered to, ensuring proper deductions, exemptions, and accurate tax liability.
- Detection of Errors and Fraud:
A tax audit helps identify discrepancies, underreporting of income, or any fraudulent practices that may lead to incorrect tax filings.
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Overview
A Tax Audit is an examination of a taxpayer’s financial records, accounts, and statements by tax authorities or an external auditor to ensure compliance with tax laws. Its primary purpose is to verify that the income, expenses, and deductions reported on the tax returns are accurate and reflect the true financial condition of the taxpayer.
Key Aspects:
Legal Requirement: Under Indian tax law (Section 44AB of the Income Tax Act), businesses and professionals exceeding certain income thresholds are mandated to undergo a tax audit.
Objective: The audit ensures that taxpayers have maintained proper financial records, calculated their income accurately, and followed the tax provisions correctly. It helps the tax authorities to detect discrepancies like underreporting of income or claiming excessive deductions.
Who Conducts It: Typically, a qualified Chartered Accountant (CA) conducts the audit. The CA will audit the books of accounts, verify the correctness of the income declared, deductions claimed, and tax liabilities computed by the taxpayer.
Filing Deadline: The tax audit report is required to be submitted by the specified deadline, usually by September 30 of the assessment year, unless extended by the tax authorities.
Consequences of Non-compliance: Failure to conduct a tax audit or submit the report by the due date can result in penalties, generally amounting to 0.5% of the total sales, turnover, or gross receipts, subject to a maximum of ₹1.5 lakh.
It play a critical role in ensuring transparency, helping prevent tax evasion, and improving tax compliance.
Requited Documents
For Individuals/Proprietors:
- Bank statements, savings, and current accounts.
- Salary slips (for salaried individuals).
- Rent agreements (if earning rental income).
- Capital gains/losses records
- Income and expense registers.
- Sales and purchase records.
- tax-saving instruments details (PPF, MF or insurance)
- Form 26AS
- Tax Deducted at Source (TDS) certificates.
- ITR login details
For Companies
- Certificate of Incorporation and MOA and AOA
- Purchase and Sales registers
- TDS certificates.
- GST returns (GSTR-1, GSTR-3B, GSTR-9).
- Salary register, payroll statements, PF, and ESI
- Capital gains/losses records
- Income and expense registers.
- ITR login Details
For Trusts/Societies
- Trust Deed and Donation registers
- Receipts and payment accounts.
- Income and expenditure statements.
- Ledger accounts, including assets and liabilities.
- Details of any investments made by the trust.
- Bank Statements
- TDS certificates (if applicable).
- Form 10B
- Proof of contributions received
- ITR Login Details
For Partnerships
- Partnership Deed
- Sales and purchase registers
- Asset and liability accounts.
- TDS certificates
- GST returns (if applicable).
- Details of partner remuneration, salary, and share of profit.
- Proof of partner capital contributions and withdrawals.
- Bank Statements
- ITR login details
Why Taxamicus?
Use of Automation for Efficiency
We leverage advanced automation tools to streamline the audit process, minimizing human errors, ensuring accuracy, and delivering faster results.
Customized Solutions
We understand that every business is unique, and we offer tailor-made audit solutions that fit your specific financial and compliance needs.
Proactive Tax Compliance
We help businesses stay ahead of compliance requirements, identifying potential risks and providing timely advice to avoid penalties.
Timely Submissions
We guarantee the timely submission of your tax audit reports, ensuring that you meet all deadlines without last-minute stress.
FAQ
This Audit is mandatory for businesses with turnover exceeding ₹1 crore (or ₹10 crore if digital transactions are 95% or more) and professionals with gross receipts over ₹50 lakhs, as per Section 44AB of the Income Tax Act.
The due date for filing the audit report is usually September 30 of the assessment year, but extensions may be granted by tax authorities.
If a taxpayer fails to conduct the audit when required, they may face a penalty of 0.5% of turnover or gross receipts, subject to a maximum of ₹1.5 lakh.
This audit must be conducted by a qualified Chartered Accountant (CA) who is registered and authorized under the Income Tax Act to audit financial records.
Documents needed for a tax audit include financial statements (balance sheet, profit and loss account), sales and purchase registers, tax returns, and books of accounts like ledgers, cash books, etc.
Yes, a tax audit report can be revised if there is any error or omission in the original report. However, the revised report must be filed before the tax return filing deadline.
There are different types of tax audits, such as those required under Section 44AB for businesses and professionals, and special audits like transfer pricing audits or audits due to investigation.
Yes, partnership firms are subject to tax audits if their turnover exceeds the prescribed threshold limits under Section 44AB.
A statutory audit is a general review of a company’s financial health and records, required under company law. A tax audit specifically focuses on verifying compliance with income tax laws and is mandated by the Income Tax Act.