ISO Certified Premium Startup Consultancy Company
ISO Certified Premium Startup Consultancy Company
There is a number of audits conducted under various acts and laws such as statutory audit conducted as per company law, stock audit, GST audit, etc. Income Tax Audit is also conducted as per section 44AB of the Income Tax Act 1961. Tax Audit applicability for FY 2019-20 is when total turnover or gross receipt exceeds Rs 1 Crore in the financial year.
An audit is an official Inspection of the business accounts by an independent body (Tax Auditor) to give assurance of transparency of organization to their users.
There are several types of audit mandates under different laws such as company audit/stock audit / statutory audit/cost audit / interim audit etc.
Similarly, Income Tax Law mandates an audit of books of accounts of the Organization called a TAX AUDIT.
As per section 44AB of the Income Tax Act 1961 when turnover/receipts cross the prescribed limit. The income tax audit limit for AY 2019-20 is when the taxpayer exceeds a turnover limit of Rs 1 Cr in the financial year. The assessee may be required to get his account audit in certain other circumstances that are defined in the below-mentioned table.
To report on specific information such depreciation as per Income Tax Act and as per Indian Accounting Standard (if applicable) compliances for various provisions of Income Tax Act
MANDATORY
Every Taxpayer is required to have Tax Audit if their Sales/ Gross Turnover/ Gross Receipts of business exceed Rs 1 crore for the FY 2019-20 and this threshold limit is proposed to be increased to Rs. 5 crores with effect from FY 2020-21 (AY 2021-22)
|
CATEGORY OF BUSINESS |
THRESHOLD FOR FY 2019-20 |
|
Businesses |
|
|
Carry business (other than opting presumptive taxation scheme) |
Section 44AB of Income-tax act 1961 |
|
Business opting presumptive taxation scheme u/s 44 AE & 44 AB |
Declare profits or gains less than the prescribed limit (such as 8% or 6%) |
|
Business opting presumptive taxation scheme u/s 44 AD |
Declare profits or gains less than the prescribed limit and has income across the basic threshold limit but does not exceed Rs. 2 Crore in Financial Year, then tax audit will not apply on such entity |
|
Profession |
|
|
Carrying on Profession |
Total Gross Receipts < Rs. 50 Lakhs |
|
Profession Carrying and eligible for presumptive taxation scheme u/s 44 ADA |
|
|
Business Loss |
|
|
Business incurred Loss and not opting presumptive taxation scheme |
Total Sales / Turnover < 1 Crore |
|
The taxpayer incurred losses but Total Income Exceeds the basic threshold limit |
Taxpayer subject to tax audit u/s 44 AB |
FORM PRESCRIBED FOR AUDIT REPORT
In case of either of the above-mentioned Audit Report, the tax auditor must furnish the specific details in Form 3 CD.
As per the tax audit applicability for FY 2019-20, there are no changes are taking place in the penalty for non-filing of audit or delay in filing. If any assessee who is required to get his audited fails to do so then the lease of these two may be levied as per the act.
0.5% of the total turnover/receipts
Rs 1,50,000/-
The NeuSource Startup Minds official the best Business Startup Consultant offer services like Startup India Registration, Trademark registration, FSSAI Licence, Society Registration
FAQs
Q. If a person is required to get an audit by any other law, then is it compulsory for him to get an account audited under the Income-tax act?
A. Yes.
Q. Tax audit Limit for FY 2019-20?
A. Taxpayer whose turnover exceeds Rs. 1Cr in the financial year, mandatorily required to get his books of account audited.
03 Mar
All pieces that originate from the Team are important to present the organization and to reach at new statures. Neusource is one of an Endeavor in current field.
