Limit for Tax Audits
Limit for tax audits of interior designers in India is Rs. 1 crore for the financial year 2022-23 (assessment year 2023-24). This means that interior designers whose gross receipts or turnover exceeds Rs. 1 crore in a financial year are required to undergo a tax audit.
However, there are some exceptions to this rule. For example, interior designers who are not residents of India are not required to undergo a tax audit, regardless of their gross receipts or turnover.
Interior designers who are required to undergo a tax audit must appoint a chartered accountant to conduct the audit. The chartered accountant will review the interior designer’s financial records and tax returns to ensure that they are accurate and compliant with the Income Tax Act.
The chartered accountant will then submit a tax audit report to the Income Tax Department. The tax audit report will include the following information:
- The interior designer’s gross receipts or turnover
- The interior designer’s income
- The interior designer’s expenses
- The interior designer’s tax liability
- The chartered accountant’s opinion on the accuracy and compliance of the interior designer’s financial records and tax returns
If the Income Tax Department finds any discrepancies in the interior designer’s financial records or tax returns, they may issue a notice of demand for additional tax. The interior designer will then have to pay the additional tax, along with interest and penalties.
Limit for Tax Audits: It is important for interior designers to be aware of the tax audit requirements and to take steps to ensure that their financial records and tax returns are accurate and compliant with the Income Tax Act. By doing so, they can avoid any unpleasant surprises during a limit for tax audits.
To visit: https://www.mca.gov.in/
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