Under section 44AB of the Act, every person leading on business is. As we all know there are several kinds of audits being carried under different laws such as cost audit, company audit or stock audit, etc. Meaning of Tax Audit within the same way tax audit limit for ay 2021-22 is governed by income tax law because the name suggests, a tax audit is an examination or review of accounts of any business or profession administered by taxpayers from a tax point of view.
Tax Audit Limit For AY 2021-22
obliged to get his accounts audited, if his entire sales, turnover, or gross receipts, in business exceed or exceed one crore rupees in any preceding year. Just in case of an individual carrying on the business he’s required to get his accounts audited if his gross receipt in business exceeds fifty lakh rupees in any preceding year. to reduce the compliance burden on small and medium industries, through Finance Act 2020.
(i) all of all receipts in cash during the preceding year doesn’t exceed five percent of such receipt; and
(ii) all of all payments in cash during the preceding year don’t exceed five percent of such payment.
Where the provisions of 44AD(4) apply to the assessee and his income exceeds the maximum amount which isn’t chargeable to income-tax in any preceding year, he shall be liable to Tax Audit as per section 44AB (e) of the income tax Act.
ITR Due Dates Extended for AY 2021-22
The Government has extended the due date of filing ITR for Assessment Year 2021-22 for individuals by a couple of months till September 30. The Central Board of Direct Taxes (CBDT) also extended the ITR filing deadline for businesses by a month till November 30.
According to the income tax law, for individuals whose accounts aren’t needed to be audited and who regularly file their income tax return applying ITR-1 or ITR-4 forms, the deadline to file ITR is July 31. The deadline for taxpayers, like companies or firms, whose accounts are obliged to be audited is October 31. These due dates have now been extended.
Why The Audit is Important
Accounting as a profession is large and comprises many areas of specialization within its framework. While accounting deals with the tracking and recording of financial transactions, auditing fulfills the role of verifying the correctness of the accounts. Auditing in some ways defines the integrity of the complete accounting of an enterprise. Auditing financial records on an annual basis are vital for a non-profit or a public company. This may add credibility to your efficiency.
The purpose of auditing is especially seen in case of errors in your accounts. If your recording has not been up to date or in order, an auditor can make important contributions in revealing those details. If your recording has not been up to date or in order, an auditor can make important contributions in revealing those details. If the details are uncovered to indicate any presence of fraud or, forensic auditors’ services are advisable. There’s an extra subfield even within the field of audits that deals with cases touching on the lines of criminal activities. Different types of audits will be available depending on the necessity of the organization. If you are worried about accounting and bookkeeping then Taxkundali is one of the Top options in Jaipur. Taxkundali has the best-experienced accountant team. We are the Top Chartered Accountant Firms in India and Top Accounting Audit Company in Jaipur.