As per the Income Tax Act, of 1961, certain taxpayers are compulsorily required to undergo income tax audits of their books of accounts. An income tax audit is an in-depth inspection of the books of accounts of a business entity or a professional person.
This action has several benefits, including:
- It shows a dedication to promoting financial transparency and responsibility.
- it ensures that financial records and ITRs are accurate and reflect the actual financial activities of the taxpayer.
- These audits act as a deterrent against tax evasion by discouraging entities from misrepresenting their income or inflating their expenses to reduce their tax obligations.
If you are interested in learning about the deadline for filing a Tax Audit Report and ITR for certain taxpayers, as well as who is qualified to conduct an Income Tax Audit according to Income Tax Rules, then this article is for you.
When Should Tax Audit Reports be Submitted as Per I-T Department?
A taxpayer who needs to obtain a tax audit report must have their book of accounts audited and receive the audit report by September 30th of the relevant assessment year.
For example, if an individual’s business or professional income in FY 2022-23 exceeds the threshold for requiring a tax audit, they must have the audit completed by September 30, 2023, and upload the report to the ITR portal by the same date.
What is the Last Date for ITR Filing with the Audit Report?
It is a notable fact that the deadline for filing an ITR varies for different types of taxpayers. Taxpayers who are required to submit an audit report must file their ITR by October 31st of the assessment year. This deadline applies to taxpayers who must have their accounts audited according to Section 44AB.
For example, if an individual’s business or professional income exceeds the threshold for requiring a tax audit in FY 2022-23 (AY 2023-24), they must have their books of accounts audited by September 30, 2023, and file their Income tax return with the audit report on or before October 31, 2023.
Thus taxpayers having business and professional income need to remember two important dates in the context of ITR filing.
- 30th September: The due date for the tax audit report under section 44AB.
- 31st October: The due date for filing ITR along with this tax audit report.
Choosing the Right Professional for Conducting a Income Tax Audit
A taxpayer who is required to conduct a tax audit must hire two different chartered accountants. One chartered accountant is responsible for managing the books of accounts and day-to-day operations, while another chartered accountant is responsible for inspecting the books of accounts for the purpose of the tax audit.
The CA conducting the tax audit can’t manage the day-to-day operations of the same taxpayer.
The tax audit report must be electronically filed by the chartered accountant. After the tax audit report has been filed by the chartered accountant, the taxpayer must approve the report from their e-filing account with the Income-tax Department.
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