Compliance & Taxation

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Compliance & Taxation

Compliance & Taxation

1. Preparation of Tax Audit
2. Preparing and filing of GSTR-9 & 9C
3. Preparing and filing of GSTR Return (GSTR-1 & 3B)
4. Preparing and filing of TDS/TCS Return
5. Preparing and filing of Income Tax Return…etc various things

Preparation of Tax Audit

Audit is an examination or review of accounts of any business or profession carried out by taxpayers from an income tax viewpoint. It makes the process of income computation for filing of return of income easier.

Audit’ suggests that it is an official inspection of an organization’s accounts and production of reports, typically by an independent body. It is also referred to as a systematic review or assessment of something.

Objectives Of Tax Audit : –

Tax audit is conducted to achieve the following objectives: –

1. Ensure proper maintenance and correctness of books of accounts and certification of the same by a tax auditor
2. Reporting observations/discrepancies noted by tax auditor after a methodical examination of the books of account
3. To report prescribed information such as tax depreciation, compliance of various provisions of income tax law, etc.

All these enable tax authorities in verifying the correctness of income tax returns filed by the taxpayer. Calculation and verification of total income, claim for deductions etc.

Who is mandatorily subject to tax audit?

A taxpayer is required to have a tax audit carried out if the sales, turnover or gross receipts of business exceed Rs 1 crore in the financial year. However, a taxpayer may be required to get their accounts audited in certain other circumstances. We have categorised the various circumstances in the tables mentioned below:

Amendments in the above provision Finance Act 2020: The threshold limit of Rs 1 crore turnover for a tax audit is proposed to be increased to Rs 5 crore with effect from AY 2020-21 (FY 2019-20) if the taxpayer’s cash receipts are limited to 5% of the gross receipts or turnover, and if the taxpayer’s cash payments are limited to 5% of the aggregate payments.

Finance Act 2021: With effect from 1st April 2021, the threshold limit of Rs 5 crores is increased to Rs 10 crores in case cash transactions do not exceed 5% of the total transactions.

How and when tax audit reports shall be furnished?

The tax auditor shall furnish a tax audit report online by using his login details in the capacity of ‘Chartered Accountant’. Taxpayers shall also add CA details in their login portal.

Once the tax auditor uploads the audit report, the same should either be accepted/rejected by the taxpayer in their login portal. If rejected for any reason, all the procedures need to be followed again till the audit report is accepted by the taxpayer.
You must file the tax audit report on or before the due date of filing the return of income. It is 30th November of the subsequent year in case the taxpayer has entered into an international transaction then 30th September of the subsequent year for other taxpayers. The subsequent year itself is the assessment year.