According to Section 44AB of the Income Tax Audit Act, a tax investigation is mandatory in the following cases:
- Anyone who is in Business and has a turnover of more than Rs. 1 Crore.
- Those who are doing a Profession and gross receipts exceed Rs 50 Lakh (ie, A.J. 2018-19).
- The person who has chosen the proposed taxation system under Section 44AD, but claims that the profits of such companies are lower than the estimated profit calculated under the scheme. According to Section 44AD, the profit is 8% of the total turnover or gross income.
- A person who has opted for the presumptive taxation scheme under Section 44ADA but claims that the profits of such Profession are lower than the deemed profits computed according to the scheme. According to the Section 44ADA, the deemed profits are 50% of total turnover or gross receipts of Profession.
- Anyone who has chosen the proposed taxation system under Section 44, claims that the profits of such companies are lower than the estimated profit calculated under the scheme. According to Section 44AE, the profit is 8% of the total turnover or gross income.
- Income received from rent on the house or other rental income.
- All money is received by selling an asset held as an investment.
- The receipt of the sale of real estate.
- Income which is received by way of Interest.
It may be noted that if a person is required to have his books revised pursuant to other laws, he is entitled to get his books revised according to the law before the specified date and handed over that date of the tax assessment under other Acts and further auditor’s report He is not obliged to receive tax research carried out under Section 44AB.
Income Tax Audit Report
The report of the audit under income tax shall be submitted to:
- Form 3CA – If the books of a person’s business or profession have been audited under other laws.
- Form 3CB – If the books of business or occupations of a person have not been audited under other laws.
- Form 3CD – These forms must be listed in both of the above cases. That is the statement of information to be delivered under Section 44AB.
The date for filing report of Income Tax Audit
The review under income tax shall be made by the auditor’s conciliation and the report shall be submitted by 30 September of the relevant year of assessment.
If a person fails to comply with the Income Tax Audit (Section 44AB), punishment is 0.5% of total turnover or Rs. 1,50,000, whichever is less. However, if you have a reasonable reason for not reporting a Revenue Tax, you can not make such a penalty.
For help with ITR Indexing, please Consult Certicom Consultant taxpayer. You can register ITR yourself through our ITR software or get help CA on the application. You can also use the backup option, amount of return or revised file.