Tax Audit Services in India
Tax audit services in India, including Ghaziabad, are essential for businesses and individuals to ensure compliance with tax laws and regulations. A tax audit involves the examination of financial records, accounts, and other relevant documents to verify the accuracy of tax returns filed with the Income Tax Department.
Income Tax Audit U/s 44AB can be applicable for:
- Businesses
- Income from Profession
- Freelancers, Blogger
- F& O Income or loss
- Stock Trading Income or loss
Tax Audit Under Section 44AB of Income Tax Act
Under Section 44AB of the Income Tax Act, 1961, persons involved in certain professions or exceeding a certain amount of turnover or gross receipts in business have to get their account books audited by a chartered accountant.
Tax Audit refers to inspection or scrutiny of accounts, in order to ensure compliance with the Income Tax Act and other related laws, and to check fraudulent practices.
Who has to get tax audit U/s 44AB done?
The following person are required to get tax audit done in the given cases.
1. A person carrying on business if the total sales/ turnover exceeds Rs. 1 crore during the previous year relevant to assessment year.
2. A person carrying on profession if the gross receipts exceeds Rs. 50 lakhs during the previous year relevant to assessment year.
3. For businesses opting for the presumptive taxation scheme under Section 44AD, a tax audit is required if the declared income is less than 6% (or 8% for digital transactions) of the turnover.
Therefore, every person who derives income by way of Business or profession and maintains books of accounts and has not opted for computation of income on presumptive basis under section 44AD, 44ADA or 44AE of the Income-tax Act, 1961 has to get tax audit done provided his income exceeds the prescribed threshold limit.
Who can conduct Tax Audit U/s 44AB?
Tax audit can be conducted by a practicing Chartered Accountant having full-time certificate of practice (COP).
