Specified class of taxpayers must conduct income tax audits as per the income tax law. This audit is a thorough inspection of the books of accounts of the taxpayer with business or professional income.
The primary reason behind tax audits is to ensure the accuracy of financial records and income tax returns (ITRs).
This is why the law has mandate certain taxpayers to conduct a tax audit and submit its report.
As tax audits act as a deterrent against tax evasion and discourage entities from misrepresenting income or inflating expenses to lower income tax outgo.
These are the taxpayers who need to conduct a tax audit and submit their report by 30th September, 2024, on the ITR e-filing portal:
Taxpayers with business income: As if the turnover or gross receipts of a business exceed Rs 1 crore in a financial year, the business must get its accounts audited. This threshold limit (Rs 1 crore) is increase to Rs 10 crore if cash receipts and cash payments during the year do not exceed 5% of the total receipts or payments. And if a business opts for presumptive taxation under Section 44AD but its turnover exceeds Rs 2 crore, then also it must get its accounts audited.
Presumptive taxation under Section 44AE: For taxpayers with income from the business of plying, hiring, or leasing goods carriages, if the presumptive income under Section 44AE is less than the actual income, the taxpayer needs to get their accounts audited if the turnover exceeds Rs 10 lakh.
Taxpayers with professional income: A professional, such as a doctor or a chartered accountant, is require to have his accounts audited if his gross receipts from the profession for the financial year for which ITR is being file exceed Rs 50 lakh. When a taxpayer is carrying on a specified profession under Section 44AA (1) and is eligible for presumptive taxation scheme but reports their profits lower than 50% of gross receipt then tax audit is require. So, for specified professionals to claim profit below 50% of their gross receipts tax audit is mandatory even if their gross receipts is less than Rs. 50 Lakh.
As mention, the deadline for submission of the income tax audit report is 30th September, 2024, for FY 2023-24 (AY 2024-25).
As in general, the last date for filing of an income tax audit, Tax audit report as per Section 44AB, is 30th September 2024 of the following year.
But, in the case of taxpayers cover by the transfer pricing audit, the last date for completion of the tax audit is 31st October, 2024.
It must also be note that the Books of accounts and other related records are require to be maintain for 8 years from the end of the relevant financial year.
While 30th September, 2024, last date for income tax audit for FY 2023-24.
In case of assessee cover by the provision of transfer pricing audit, the last date for completion of tax audit will be 31st October, 2024.
The deadline for filing ITR is different for various categories of taxpayers.
For taxpayers who are liable for tax audit as per section 44AB, the due date to file ITR is 31st October, 2024, for FY 2023-24 (AY 2024-25).
As certain specified taxpayers that are require to get their accounts tax audited under section 44AB, the deadline is 30th September every year.
For FY 2023-24, the last date for tax audit will be 30th September, 2024.
The last day for filing ITR for taxpayers who are require to get a tax audit done by 30th September 30 is 31st October 31 every year (31st October, 2024 for FY-23-24).
If you miss the deadline, you can still file the ITR after paying a penalty.
Section 44AB said that if a person is already require to audit their accounts under another law, they don’t need to perform a separate audit for section 44AB.
As it is enough for the person to audit the accounts under that law and obtain the require report with a report from a chartered accountant in the format prescribe by section 44AB (Form 3CA and Form 3CD).
So, if the books of a company are audited under the Companies Act, it does not need to get the books audited again under the Income Tax Act.
As tax audit is not require for a professional if his gross receipts are up to Rs 75 lakh, provide his cash receipts are less than or equal to 5% of his total gross receipts.
