Tax Audit Service
Introduction:
For individuals who fall under the purview of taxpayers and witness their business turnover or professional receipts surpassing the specified limits outlined in The Income Tax Act during any given fiscal year, a mandatory obligation arises. This obligation dictates that the individual must undergo a thorough audit of their books of accounts, a process to be conducted by an Independent Chartered Accountant. The resultant Tax Audit report is prepared in accordance with Section 44AB of the Income Tax Act, 1961, with a submission deadline of 30th September of the Assessment Year.
The primary objective of the tax audit is to ensure meticulous adherence to Income Tax compliances and other pertinent laws. This involves a comprehensive examination of the assessee's books of accounts to validate compliance with the stipulations set forth by the Income Tax Law. Our adept Tax Audit team, well-versed and qualified, executes this systematic process within defined timelines.
Mandatory Tax Audit Criteria:
As per Section 44AB of the Income Tax Act, 1961, certain individuals engaged in business or a profession are obligated to subject their books of accounts to audit by a practicing Chartered Accountant (CA).
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Business:
- Total sales, turnover, or gross receipts exceeding Rs. 1 crore in any previous year necessitate a tax audit.
- The limit of Rs. 1 crore is substituted by Rs. 5 crore if the aggregate of cash receipts and payments during the previous year does not exceed 5% of total receipts and payments. This revised limit is effective from the Assessment Year 2022-23.
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Profession:
- For professions, a tax audit is mandatory if gross receipts exceed Rs. 50 lakhs in any previous year.
Entities meeting the above criteria must undergo a Chartered Accountant-led audit of their books of accounts within the stipulated timeframe and furnish the audit report.
Benefits of Tax Audit for Your Organization:
Aside from ensuring compliance and safeguarding against legal consequences and penalties, a tax audit offers various organizational benefits, including:
- Acceptance of audited statements by government authorities for taxation purposes.
- Enhanced credibility for obtaining loans and licenses.
- Increased trustworthiness for customers, suppliers, investors, employees, and tax authorities.
- Reduction in the likelihood of fraudulent activities.
Penalty for Non-Compliance:
Non-filing or delayed filing of the tax audit report may attract a penalty, calculated as the lesser of 0.5% of total sales, gross receipts, or turnover, or Rs. 1,50,000.
Why Choose NS Consultancy?
NS Consultancy, with its rich experience, serves a diverse clientele, ranging from individual taxpayers to conglomerates, establishing itself as one of the leading tax audit consultants in West Bengal. Our commitment to efficient audits, proactive issue management, adherence to auditing standards, and focus on providing crucial insights makes us the preferred choice for businesses seeking reliable and resourceful reporting. If you are in search of an experienced tax audit firm in West Bengal, NS Consultancy stands ready to meet your expectations. Contact us at info@nsconsult.co.in for Income Tax Audit services in West Bengal.
