Tax Audit

Tax Audit is the process of examining a person’s books and records for errors. It is conducted from a tax compliance viewpoint, and involves assessing a person’s income and deductions. It is essential to report all essential details as per the Income Tax Act.

There are a variety of ways in which a taxpayer can avoid the risk of an audit. The most common way to avoid this risk is to ensure that your books and records are properly audited. The best way to avoid this is to conduct the audit yourself, which is an important step to take if you plan to appeal the tax.

Frequently Asked Questions

Who is eligible for tax audit?

Any business where the total sales, turnover, or receipts exceeds Rs. 1 crore in a year should have a tax audit in India. As a professional, receipts over Rs. 50 lakh makes you eligible for a tax audit.

What happens in tax audit?

An IRS audit is a review/examination of an organization's or individual's accounts and financial information to ensure information is reported correctly according to the tax laws and to verify the reported amount of tax is correct.

Is tax audit compulsory for 5 years?

In any of these five years, if his taxable income exceeds the basic exemption limit, he is liable to maintain books of accounts and do a tax audit for the relevant financial year.

How do I start a tax audit?

Tax Audit Report to be filed Electronically by the chartered Accountant to the Income Tax Department. After filing the Income Tax report by the Chartered Accountant, the taxpayer needs to approve the submitted reports using an E-filing account with the Income Tax Department.