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Guidelines For Tax Audit And Its Compliances
Written by Gagandeep Arora - Printed on - Date - 15th Sep 2023
Tax Audit can be daunting but understanding its applicability, preparing adequately and maintaining compliance can help ease the process. By staying vigilant and proactive in your financial management, you can ensure tax audits become less of a concern and more of an opportunity to demonstrate your commitment to financial integrity and compliance. Under Section 44AB of the Income Tax Act the main objective of tax audit is to check the accuracy of the maintenance of the financial books of accounts.
A taxpayer is required to have a tax audit if the sales, gross receipts of business or turnover exceeds Rs.1Crore in the financial year
– Incase an assessee selects scheme of presumptive taxation under section 44AD then it is not applicable to them.
–Any professional whose gross receipts would increase Rs.50 lakhs for the previous financial year.
– If any business has more of digital transactions then there should be an increase in the limit for audits.
| Basis | Limit |
|---|---|
| Businesses with more than 5% cash transactions | 1 Crores |
| Businesses with less than or equal to 5% cash transactions | 10 Crores |
| Professionals with gross receipts in the previous FY | 50 Lakhs |
| Presumptive taxation scheme under Section 44AD | 2 Crores |
Frequently Asked Questions
1. What is the tax audit limit for FY 2023-24?
