Our team of auditors at KMS is in this profession for decades, and they have undertaken tax audits for several companies, whether small, medium, or large.
Section 44AB of Income Tax Act 1961
Section 44AB of the Income Tax Act 1961 requires that if the annual gross turnover or receipt of the company exceeds a specified limit, then it must get its accounts audited by a chartered accountant. The chartered accountant provides his findings and observations in his tax audit report in Form numbers 3CA/3CB and 3CD.
Difference between tax audit and statutory audit
A tax audit differs from a statutory audit on many grounds. A statutory audit is conducted to make sure proper reliability, transparency, fairness, and precision are maintained in the financial statements of the company. On the other hand, a tax audit is done for proper maintenance of books and to ensure that true data is reflected in the taxable income and deductions made by the firm.
Tax Audit Limit
A taxpayer, whether in business or professional has to get a tax audit done if his turnover/receipts exceed tax audit limits as defined below:
Further, the audit is also required in cases where the taxpayer is declaring lower net profit while declaring profit U/s 44AD, 44ADA, 44AE.
Tax Audit Due Date
The assessee is required to file a tax audit report by 30th September of the assessment year.
Tax Audit Penalty
As per Section 271B of the Income Tax Act 1961, the penalty for non-filing of the audit report is lower of:
Tax Audit Process
We very firmly believe that our clients are our biggest assets, and when it comes to carrying out customer-centric services, we need to stand in their shoes and deliver exactly what they are looking for.
We understand you are looking for an auditor who engages properly into intricacies to understand all the rules, regulations, and complex laws of the Indian tax system.
We at KMS have a team of tax professionals who draw their expertise from diverse sources and decades of knowledge. We make sure we provide you a seamless tax auditing service and tax compliance service.
The auditor is required to prepare audit report in form 3CA, and annexure to the audit report in form 3CD for assesses whose books of accounts are required to be audited under any other law. In other cases, the auditor prepares his audit report in form 3CB and annexures to the audit report in form 3CD.
It is required by the law to file a tax audit report by 30th September of the relevant assessment year. For assesses liable for transfer pricing audits, the due date is 30th November of the relevant assessment year.
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