Who needs to get their accounts audited?

As per income tax Act law in India certain category needs to get their accounts audited and the due date of income tax return filing for such category is 30^th September 2019.Tax Audit under section 44AB of income tax Act Law in India is mandatory for following category of taxpayers:

- Individual who are into business and the turnover or gross receipts exceed a sum of 2 crore rupees in any previous year

- Individual into profession and whose gross profits exceed 50 lakh rupees in any previous year.

- Person who is eligible to opt for the presumptive taxation scheme of section 44AD but claims the profits or gains for such business to be lower than the profits and gains computed as per the presumptive taxation scheme of section 44ADand his income exceeds the amount which is not chargeable to tax.

Certain entities like a company or co-operative society must get their accounts audited under specific laws. Such entities are not required to undergo another tax audit under Section 44AB

Who performs the Tax Audit under Section 44AB

Tax audit must be certified by a Chartered Accountant in the prescribed forms.Audit report in respect of audit conducted under Section 44AB is prepared in Form No. 3CB and the particulars of audit must be reported in Form 3CD. Tax audit reports for those who are required to get their accounts audited by or under any other law must be prepared in Form 3CA/3CB and the particulars for the same must be reported in Form 3CD.

Due Date for Tax Audit for A.Y. 2019-20

30th of September 2019

Penalty under Section 44AB

If you fail to follow the tax law of audit. Lower of below below is penalty:

0.5% of the total revenue of business or 0.5% of the total receipts in profession of the current financial year.

Rs 1,50,000