Tax Audit Threshold Limit

Tax Audit Threshold Limit, the threshold limit and due date of tax audit report for organizations, charitable and social service entities in India are as follows:

Threshold Limit:

Organizations, charitable institutions and social service entities can requir to get their accounts audit if their total gross receipts or turnover exceeds Rs. 1 crore during the financial year.

If the entity is engaging in a profession, trade, business, or vocation and its gross receipts exceed Rs. 50 lakhs, then a tax audit is also mandatory.

◘ Due Date for Tax Audit Report:

The due date for filing the tax audit report is September 30th of the assessment year.

The assessment year is the year following the financial year for which the audit is being conduct.

This due date can extend by the Income Tax Department in certain cases, but it’s essential to keep track of the original and extended due dates to ensure timely compliance.

◘ Importance of Compliance:

Ensuring compliance with the tax audit requirements is crucial for organizations, charitable institutions and social service entities to avoid penalties and legal issues.

Failing to get a required tax audit or missing the deadline for filing the tax audit report can lead to financial penalties and potential legal consequences.

Remember that these regulations are subject to change based on updates in tax laws, so it’s recommended to stay updated with the latest information provided by the Income Tax Department or a qualified tax professional.

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

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