Income Tax Audit under Section 44AB – Criteria, Audit Report, Penalty

Описание: Click to know more about section 44AB: https://cleartax.in/s/tax-audit-secti...

Tax audits are conducted to achieve these objectives:

To ensure proper maintenance of books of accounts and certification of the same by a tax auditor.
Reporting observations/discrepancies noted by tax auditor after a methodical examination of books of accounts.
To report particular information such as tax allowances/disallowances, TDS payments and compliance of various provisions of income tax laws, and so on.

In general, the due date to file the tax audit report is 30 September of the assessment year. However, for the AY 2020-21, the due date stands extended to 31 October 2020 to complete and file the tax audit report. In case of taxpayer’s having international transactions, the due date to file the tax audit report is 30 November 2020.

Penalty for non-compliance with tax audit:

The least of the following is charged as the penalty for failing to furnish a tax audit report within the due date:
1. 0.5% of the total sales, turnover or gross receipts
2. Rs 1,50,000