Dedline of Tax Audit for Sales

The dedline of tax audit for Sales & Services businesses in India is September 30th of the assessment year. The assessment year follows the financial year in which the business income was generated; for instance, the assessment year for the fiscal year 2022-23 is 2023-24.

This deadline is uniform for all businesses, irrespective of their scale or turnover.

Nonetheless, certain businesses qualify for exemption from tax audits, including:

1. Businesses with a turnover below Rs. 25 lakhs.

2. Businesses primarily engaged in agriculture or allied activities.

3. Businesses owned and managed by a sole individual.

4. Should your business necessitate a tax audit, it is imperative to engage a chartered accountant for the audit process. The chartered accountant will compile a tax audit report, which subsequently gets submitted to the Income Tax Department.

5. Non-compliance with this requirement could lead to a penalty of up to Rs. 10,000.

Here are key considerations to bear in mind regarding tax audits for Sales & Services businesses:

1. Timely filing of the tax audit report on or before the due date is essential.

2. The tax audit report must carry the signature of the conducting chartered accountant.

3. Accompanying the tax audit report are the audited financial statements of the business.

4. Filing of the tax audit report is mandatory through the Income Tax Department’s e-filing portal.

To visit: https://www.incometax.gov.in

 

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