The
Central Board of Direct Taxes (CBDT) has extended the Income Tax Return filing
deadline for audit cases from 30th September 2019 to 31st
October 2019. As per the Income Tax Act Rule, the ITR should be file by those
entities who are assessed under section 44AB of the
income tax such
as companies, partnership firms & proprietorship. In addition, those
businesses whose total sales, turnover or gross receipts exceed Rs 1 crore in
the financial year is eligible for Tax Audit.
The
income tax department took to microblogging site Twitter and shared the post,
saying "on consideration of representations received from across the
country, CBDT has decided to extend the due date for ITR Filing & Tax Audit Reports from 30th Sep 2019 to 31st
of Oct, 2019 in respect of persons whose accounts are required to be
audited," the CBDT said in a late-night statement.
Look
at the applicability in Tax Audit under the following conditions-
- Must be a person under the Income-tax Act
- Must carry on business or profession
- Must maintain books of account
- Object to earn profit or gain
- Profit or gain comparable under Chapter IV
- Income is Taxable or Loss allowable under Act
Who
is required to get their accounts audited?
- Individual/Proprietorship
- HUF
- Company
- Partnership Firm
- AOP/BOI
- Local Authority
- Co-operative
Objective
of Tax Audit
As
the name suggests, the Tax Audit specifies the proper analysis or audit of accounts
of any business or profession carried out by taxpayers from an income tax
perspective. Even though it makes the process of income computation for filing
of return of income easier. Here are the objectives of a tax audit-
·
Ensure
proper analysis and correctness of books of accounts and certification of the
same by a tax auditor.
·
Checks
frauds and malpractices in filing income tax returns.
·
To
note down any discrepancies while reporting observations of books and accounts
by a tax auditor.
·
To
report prescribed information such as tax depreciation, compliance various
provision of Income Tax Act law.
Penalty
for Non-Compliance of Tax Audit
·
Non-compliance
of tax audit regulations by taxpayers attracts a penalty of whichever is lower
from the following:
·
0.5%
of total sales
·
Turnover
or
·
Gross
receipts
·
Rs.
1,50,000
For
more details about efiling of
income tax return online visit our website: https://www.allindiaitr.com
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