Tax Audit Under Income Tax
- Tax Audit if Turnover >Rs. 100 Lac(Business)
- Tax Audit if Turnover >Rs. 50 Lac(Professional)
- Non Filling Penalty upto Rs. 1.50 lac
- List ItDue Date 30 September 2022em
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Tax Audit
Tax Audit is detail verification of books of accounts maintained by business & verify the accurateness of the income earned & deduction claimed by the assessee in the Income tax returns. Tax audit for FY 2019-20(i.e AY 20-21) shall be governed by the provisions ( Section 44AB ) & Rules laid down in the Income Tax Act 1961. This audit is conducted by Chartered Accountant Firm ensuring correct books of accounts maintained, legal provision complied & correct payment of Income Tax.
Tax Audit is independent verification of the books of accounts. During the audit Chartered Accountant (CA Firm) examines transactions of income , expenses , deductions etc. Tax audit due date for FY 2019-20 as per section 44AB of Income Tax Act 1961 is 30 September 2020. For Non filing of audit within due date penalty upto Rs. 150000 is applicable. Lalit Aggarwal & Company is trusted Chartered Accountant Firm for your Tax audit requirement in Gurgaon , Delhi etc.
Objective of Tax Audit
- Ensuring that books of accounts are in line with tax laws and accounting policies
- Reporting under Form 3 CA / 3 CB / 3 CD
- Ensuring that books of accounts shows correct income tax payer
- Preparation of reports in standard way for tax authorities
Applicability of Tax Audit
- An individual who in engaged in business turnover > Rs. 100 Lac
- An individual who in engaged in profession turnover > Rs. 50 Lac
- An individual who qualifies for the presumptive taxation claims profit lower than limit
Turnover or Gross Receipt Limit For Tax Audit For 2019-20 ( A Y 2020-21)
| Type of Tax Payer | Turnover | Tax Audit Form |
| Company | 1 Crore | 3CA and 3CD |
| LLP – Business Income | 1 Crore | 3CA and 3CD |
| LLP – Income From Profession | 50 Lac | 3CA and 3CD |
| Partnership – Business Income | 1 Crore | 3CA and 3CD |
| Partnership – Income From Profession | 50 lac | 3CA and 3CD |
Due Date of Tax Audit
Due date for tax audit for assesse for FY 2019-20 ( AY 2020-21 ) is 30 September 2020. If assesse who’s turnover/gross receipts crosses specified limit of section 44AB of Income Tax Act 1961, need to get books of account audited with in due date.
Tax Audit Penalty
Any taxpayer where tax audit is applicable & fails in tax audit filing in due date invites penalty under section 271B of Income Tax Act 1961. Penalty for non filing of tax audit shall be as below , penalty may be levied i.e lower of
- 0.5% of the total sales, turnover or gross receipts
- Rs 1,50,000
Tax Audit Report Format
Form 3CA
Form 3CA is part of tax audit report contain information of Name, Address & PAN. Name of auditor , Law under which accounts have been audited. Date of audit report , Period of Profit & Loss Account/ Income & Expenditure Account.
Form 3CB
In compliance with the rules set by the Income Tax Department of India, Form 3CB is part of an audit report. Date of balance sheet , Period of Profit & Loss Account/ Income & Expenditure Account, Address, where the books of accounts are kept.
Form 3CD
Form 3CD is part of Audit Reports in India, Form 3CD includes 32 Clauses and is an integral aspect of filing Income Tax returns in India. A detailed explanation of each point of Form 3CD is important in audit.
Difference between Tax Audit & Statutory Audit
Tax Audit & statutory audit is governed by different law. For Companies under the companies act 2013 the audit is applicable irrespective of turnover of Company. Even in case of loss statutory audit is applicable. Statutory auditor required to do detail verification of books of account of company and express written true or fair view opinion. In case of LLP where turnover exceed Rs. 40 lac or contribution exceeds Rs. 25 Lakhs then it need to appoint CA firm for LLP audit. Tax audit is governed by Income Tax Act 1961 it have different objective , scope of work , applicability , due date & audit format. Auditor need to prepare audit report in specified format, ie. 3CA/ 3CB and 3CD about findings during the audit & trace for any revenue loss if any. Its like a health checkup of assesse by CA firm on behalf of Income Tax department. Scope of Tax audit is more related to compliance with income tax Act.
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Tax Filing Due Date for FY 2019-20
| Tax Audit | GST Audit | Statutory Audit | Trust Audit | Society Audit | |
| Mandatory For | Turnover>Rs.200/50lac | Turnover>Rs.200lac | For Companies | For Trust | For Society |
| Due Date | 30 Sept.2020 | 30 June2020 | 30 Sept.2020 | 31 July 2020 | 31 July 2020 |
| Statutory Compliance | Yes | Yes | Yes | Yes | Yes |
| Mode of Audit Submission | Online | Online | Online | Online & Offline | Online & Offline |
| Who can do Audit | CA | CA/CMA | CA | CA | CA & Other |
| Audit Section | 44AB | 35(5) | Section 133 | Section11 & 12 | Section 81 |