Tax Audit Report for Freelancers
The threshold limit for tax audit for FreelancersIn India, freelancers are required to undergo a tax audit if their gross receipts or turnover from freelancing activities exceed the prescribed threshold limit.
For freelancers, the threshold limit for tax audit under Section 44AB of the Income Tax Act, 1961, is ₹1 crore (10 million) in a financial year.
This implies that if a freelancer’s total gross receipts or turnover from their freelance work exceeds ₹1 crore during the financial year, they must undergo a tax audit.
Due date of tax audit report submission for Freelancers in India:
The due date for submitting the tax audit report is typically September 30th of the assessment year. The assessment year is the year immediately following the financial year for which the audit can conduct.
For example, if the financial year is April 1, 2022, to March 31, 2023, the assessment year would be 2023-2024. Therefore, the tax audit report for this financial year would generally be due by September 30, 2023.
Note that tax laws and regulations can change, so it’s advisable to verify the current threshold limit and due date with the latest information from the Income Tax Department or a qualified tax professional.
To visit: https://www.incometax.gov.in
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