Contact Info
Grohitam Complex,
Office No. 626,
APMC Market,
Near Mathadi Bhavan,
Sector-19, Vashi,
Navi Mumbai- 400 703.
Phone : 022 789 4646
+91 976 920 1316
Email : info@alltaxfin.com
Income Tax Audit
Various laws in India govern different kinds of audits like an income tax audit, stock audit, cost audit, company or statutory audit as per company law, to name a few. Section 44AB of the Income Tax Act, 1961, lays down the provisions for an income tax audit.
Income Tax audit, as evident from the name, is aimed at evaluating whether an individual or company has accurately filed the income tax returns of an assessment year or not. An external agency is mandated to assess returns filed from income, deductions, expenditures, and other rules mentioned by the Income Tax Act, 1961. The tax audit process simplifies the computation of tax returns. The Chartered Accountant of the concerned agency performing the tax audit should submit Form 3CA or Form 3CB and Form 3CD as an audit report comprising the observations. Alliance Tax Experts are the best GST consultant in Navi Mumbai and overall Mumbai.
GST is one indirect tax for the entire country.
Income Tax Audit for companies whose tax audit is not conducted under Section 44AB of the Income Tax Act, 1961
Section 44BB: For Non-Resident Indians (NRIs) involved in business specialising in the mineral oils industry, like exploration.
Section 44BBB: International company involved in the business of civil construction etc. in certain power projects.
Section 44AD: Any business except those businesses mentioned under Section 44AE.
Section 44ADA: This section focuses on the regulations regarding income tax audits for eligible professionals.
*Section 44AE**: Businesses specialising in leasing, hiring and plying of goods carriages.
Objectives of Tax Audit
Here’s why tax audit is necessary:
An analysis of the accuracy of income tax returns filed in an assessment year by individuals and companies, and maintenance of records by the Chartered Accountant.- Reporting of findings by the tax auditor after a detailed analysis of accuracies/inaccuracies in tax returns filed.
- Reporting essential details regarding compliance, tax depreciation, etc., as per the laws for income tax. This streamlines the processes for the income tax authorities in calculation and assessing the accuracy of the income tax return filed by the individual or company.
- Checks frauds and malpractices in filing income tax returns.