This is the high time of Income Tax Audit season. The Chartered Accountant, Tax Advocates, Tax Practitioners and Accountants are most busiest inn Tax Audit Report filing. The due date of Tax Audit Report of AY 2023-24 is 30th September 2023. Income Tax Return due date for audit cases is 31st October 2023.
This time Income Tax Portal is working fine and smoothly. Very less glitches are faced by the portal users. But still some tax professionals are seeking for Extension of Tax Audit Report due date for FY 2022-23 which is the need of hour for atleast 15 Days due to work pressure. There is very less possibility of Tax Audit Report due date extension.
Some Professionals are demanding Tax Audit Due date extension while some are not in favour of any extension. Everyone has there own reason. Don’t know what will happen next. When the New e filing portal will start throwing new technical glitches. The CBDT will be forced to extend the tax audit due date.
Tax Audit Report is the report prepared by a Chartered Accountant in practice after auditing the books of accounts of the taxpayer. A detailed report in Form 3CD complying with various provisions of the Income Tax Act is provided. The last date of Filing Tax Audit Report for AY 2023-24 is 30th September 2023.
Tax Audit is Compulsory
In the following cases, tax audit is compulsory as per section 44AB of the Income Tax Act, 1961-
- In case of Business, if turnover exceeds Rs. 1 Crore during Previous year. Whereas if Cash Transactions (Receipts & Payments) does not exceed 5% of the total transactions threshold limit of turnover is increased to 10 Crores.
- In case of Profession, if turnover exceeds Rs. 50 Lakhs during Previous year.
- In case of Business covered under Presumptive taxation scheme of section 44AD, assesse has claimed income less than 8% (in case of full receipts in Cash)/ 6% (Other cases) of Turnover and Total Income is more than Basic exemption limit.
- In case of Professions covered under Presumptive taxation scheme of section 44ADA of Income Tax Act, assesse has claimed income less than 50% of Gross Receipt and total income is more than Basic exemption limit.
- Assessee under Presumptive taxation scheme of section 44AE (Presumptive taxation for Transporter), section 44BB (Non Resident in supplying Service or hiring Plant and Machinery), section 44BBB (Foreign Co in Turnkey Projects) and claiming Income less than deemed PGBP under those sections.
Read More at : Income Tax Audit limit for AY 2023-24
A tax audit is mandated for all companies, limited liability partnerships (LLPs), and individuals whose turnover crosses a particular threshold limit. Taxpayers who get their accounts audited under any other law do not have to get their accounts audited again for a tax audit until their turnover crosses the specified limit.
The tax audit report has to be furnished in the forms prescribed below:
|Category of Taxpayer||Form for Audit Report||Annexure to Audit Report|
|If the books of account of the assessee are required to be audited under any other law||Form 3CA||Form 3CD|
|In any other case||Form 3CB||Form 3CD|
Form No. 3CA/3CB is a format of audit report, whereas Form 3CD is a Statement of particulars required to be furnished under Section 44AB of the Income-tax Act.
If the assessee is required to get his books of accounts audited under any other law, it is sufficient for him to get his accounts audited under that law and furnish a report of such audit and a report in form 3CA and 3CD by a Chartered Accountant by the prescribed due date.
Penalty for late filing of Tax Audit
Where Income Tax Audit report is filed after the due date, the penalty may be levied being 0.5% of total sales, gross receipt, or turnover. The penalty will be a maximum of Rs 1,50,000.
No Penalty for Failure of Tax Audit U/s 271B in case of Reasonable Causes with Case Laws. If the tax audit report is not submitted on time or before the deadline, no penalty under section 271B will be enforced. The provisions of section 271B must be applied, however, if the audit report is not submitted by the deadline. No Penalty for Failure of Tax Audit under section 271B of the Income Tax Act,1961 in case of Reasonable Causes shown.
Penalty on CAs
There are penal provisions wherein a Penalty can be levied on a Chartered Accountants for giving erroneous reports.
As per Section 271J of the Income Tax Act, 1961 the Assessing Officer can levy a penalty of Rs. 10,000 on a Chartered Accountant. The Penalty can be levied if the Assessing Officer believes that the CA has furnished incorrect information in his report.
Therefore, Chartered Accountant must take utmost care while signing any tax Audit Report.
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