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Tax Audit in India – Turnover Exceeds above Rs. 50 Lakhs/ 1 Crore. Complete details for Tax Audit in India. Tax Audit in India for AY 2016-17 if Turnover above Rs. 50 Lakhs/ 1 Crore. Here we are providing Basic Details for Tax Audit. due date for 44ab ay 2016-17. In this article you can find complete details for tax audit like – on which cases tax audit is mandatory, Classification is given by ICAI, Penalty Provisions etc. Now you can scroll down below and check complete details regarding “Tax Audit in India – Turnover Exceeds above Rs. 50 Lakhs/ 1 Crore”
Tax Audit In India- Turnover Exceeds Above Rs. 50 Lakhs/ 1 Crore
Tax Audit is mandatory in following cases:
- The assessee is carrying on business and his/her Total Sales/Turnover surpasses Rs.1 crore
- A man carrying on calling, if his gross receipts in calling for the year surpass Rs. 50 lakhs.
- Hypothetical pay :
- The assessee is carrying on business or calling and is secured under the arrangements of area 44AD, 44AE, 44AF, 44BB or 44BBB and claims that his pay from the said business is lower than the considered benefits and picks up registered under the important segment.
Vital Note: The Tax Audit Criteria’s continue as before for F. Y. 15 – 16. Be that as it may, it is proposed to change the piece of expense review of experts from 25 Lacs to 50 Lacs from F.Y. 16 – 17 onwards.
What is the target of the Tax Audit ?
One of the destinations of expense review is to discover/infer/report the prerequisites of Form Nos. 3CA/3CB and 3CD. Aside from detailing prerequisites of Form Nos. 3CA/3CB and 3CD, an appropriate review for impose purposes would guarantee that the books of record and different records are legitimately kept up, that they loyally mirror the salary of the citizen and cases for finding are effectively made by him. Such review would likewise help in checking deceitful practices. It can likewise encourage the organization of duty laws by an appropriate introduction of records before the expense specialists and impressively spare the season of Assessing Officers in doing routine confirmations, such as checking accuracy of sums and checking whether buys and deals are legitimately vouched for or not. The season of the Assessing Officers spared could be used for taking care of more critical and investigational parts of a case.
Classification given by ICAI in calculation of Income for tax audit :
1.If a man is carrying on business and in addition calling and the Turnover of the business is Rs. 1.2 Crore and the Gross Receipts of the calling is Rs 22 Lakhs. In such a case, ICAI has elucidated through a Guidance Note that the Assessee is at risk to get the Tax Audit of both the business and calling in light of the fact that the Gross Receipts from the business surpass the breaking point of Rs. 1 Crore. Be that as it may, if his aggregate turn over was Rs. 95 Lakhs and Gross Receipts from business was Rs. 22 Lakhs, he would not be required to get his Tax Audit performed.
2.If a man is carrying on 2 Business or 2 Professions the aggregate turnover of both the organizations should be joined together and expense review might be at risk to be directed if the Total Turnover surpasses Rs. 1 Crore or Rs. 25 Lakhs all things considered.
While registering the aggregate deals or turnover with the end goal of duty review ,pay from following means should not be considered.
- Salary as Interest unless assessable as Business Income.
- Salary through Sale Proceeds of Fixed Assets.
- Salary from Sale Proceeds of Assets held as speculations.
- Rental Income.
Tax Audit Penalty Provisions :
Each assessee whomever the above said arrangement is material ought to appropriately go along them.Otherwise resistance of the arrangements of this demonstration should pull in Penalty under area 271B of the Income Tax Act 1961. In the event that any individual required to complete his review under area 44 AB neglects to do as such before the predetermined date might be obligated for
1. punishment of 0.5% of the turnover or gross receipts. However, this is liable to a most extreme punishment of Rs. 1,50,000.
Be that as it may, Section 273B states that no punishment should be required under area 271B if there is a sensible reason for such disappointment.
Following are a few cases which have been acknowledged by the Tribunals or Courts aas
- Sensible Cause are:
- Acquiescence of the Tax Auditor and Consequent Delay
- Passing or physical powerlessness of the accomplice responsible for the Accounts
- Work Problems, for example, strikes, bolt outs for a long stretch
- Loss of Accounts due to Fire/Theft and so forth outside the ability to control of the Assessee
- Common Calamities.
“Most extreme number of Tax Audit Assignments under Section 44AB which can be taken by a CA has been expanded from 45 to 60 by ICAI
Due date for 44ab AY 2016-17 – 30th September 2016