{"id":14153,"date":"2023-08-29T06:26:40","date_gmt":"2023-08-29T06:26:40","guid":{"rendered":"https:\/\/vibrantfinserv.com\/kb\/?p=14153"},"modified":"2024-05-03T06:53:06","modified_gmt":"2024-05-03T06:53:06","slug":"tax-audit-criteria-for-engineer","status":"publish","type":"post","link":"https:\/\/vibrantfinserv.com\/kb\/tax-audit-criteria-for-engineer\/","title":{"rendered":"What is the key criteria that determine whether a engineer is required to undergo a Tax Audit Report or not?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-18 alignleft\" src=\"https:\/\/vibrantfinserv.com\/kb\/wp-content\/uploads\/2023\/05\/Logo-Vibrant-FinServ-300x143.png\" alt=\"\" width=\"91\" height=\"43\" srcset=\"https:\/\/vibrantfinserv.com\/kb\/wp-content\/uploads\/2023\/05\/Logo-Vibrant-FinServ-300x143.png 300w, https:\/\/vibrantfinserv.com\/kb\/wp-content\/uploads\/2023\/05\/Logo-Vibrant-FinServ.png 482w\" sizes=\"auto, (max-width: 91px) 100vw, 91px\" \/><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/vibrantfinserv.com\/kb\/tax-audit-criteria-for-engineer\/#Tax_Audit_Criteria_for_Engineer\" >Tax Audit Criteria for Engineer<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/vibrantfinserv.com\/kb\/tax-audit-criteria-for-engineer\/#1_Gross_receipts_or_turnover_of_the_business\" >1. Gross receipts or turnover of the business:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/vibrantfinserv.com\/kb\/tax-audit-criteria-for-engineer\/#2_Cash_transactions\" >2. Cash transactions:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/vibrantfinserv.com\/kb\/tax-audit-criteria-for-engineer\/#3_Nature_of_business\" >3. Nature of business:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/vibrantfinserv.com\/kb\/tax-audit-criteria-for-engineer\/#4_Opting_for_presumptive_taxation_scheme\" >4. Opting for presumptive taxation scheme:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Tax_Audit_Criteria_for_Engineer\"><\/span><strong>Tax Audit Criteria for Engineer <\/strong><img loading=\"lazy\" decoding=\"async\" class=\"alignright\" src=\"https:\/\/vibrantfinserv.com\/kb\/wp-content\/uploads\/2023\/08\/Tax-audit-report-for-interior-designers-660x345.jpg\" alt=\"Tax Audit Criteria for Engineer\" width=\"253\" height=\"132\" \/><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><strong>The key criteria that determine whether an engineer is required to undergo a Tax Audit Report are as follows:<\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Gross_receipts_or_turnover_of_the_business\"><\/span>1. Gross receipts or turnover of the business:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">If the gross receipts or turnover of the business exceeds Rs. 1 crore, then a tax audit is required.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Cash_transactions\"><\/span>2. Cash transactions:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">If the cash receipts or payments of the business exceed 5% of the gross receipts or turnover, then a tax audit is not required.<\/p>\n<p style=\"padding-left: 40px;\">However, if the cash receipts or payments exceed 10% of the gross receipts or turnover, then a tax audit is required.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Nature_of_business\"><\/span>3. Nature of business:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">If the business is engaged in certain specified activities, such as construction, trading in shares, or real estate, then a tax audit is required even if the gross receipts or turnover do not exceed Rs. 1 crore.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Opting_for_presumptive_taxation_scheme\"><\/span>4. Opting for presumptive taxation scheme:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">If the business has opted for the presumptive taxation scheme under Section 44AD or Section 44AE of the Income Tax Act, then a tax audit is required if the total turnover exceeds Rs. 2 crores.<\/p>\n<p>If an engineer is required to undergo a TAR, they must appoint a chartered accountant to conduct the audit. The chartered accountant will then prepare a Tax Audit Report, which will be submitted to the Income Tax Department.<\/p>\n<p><strong>Here are some additional things to keep in mind about tax audit for engineers:<\/strong><\/p>\n<ul>\n<li>The due date for filing the TAR is 30th September of the following financial year.<\/li>\n<li>The TAR must be signed by the chartered accountant who conducted the audit.<\/li>\n<li>The TAR must be submitted to the Income Tax Department in Form 3CA or Form 3CB, depending on the nature of the business.<\/li>\n<\/ul>\n<p><strong>To visit: <a href=\"https:\/\/www.mca.gov.in\/\">https:\/\/www.mca.gov.in\/<\/a><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6543 aligncenter\" src=\"https:\/\/vibrantfinserv.com\/kb\/wp-content\/uploads\/2023\/06\/Definition-of-Internal-audit-.jpeg\" alt=\"\" width=\"275\" height=\"183\" \/><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><strong>For further details access our website: <a href=\"https:\/\/vibrantfinserv.com\/\">https:\/\/vibrantfinserv.com<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tax Audit Criteria for Engineer &nbsp; The key criteria that determine whether an engineer is required to undergo a Tax Audit Report are as follows: 1. Gross receipts or turnover of the business: If the gross receipts or turnover of the business exceeds Rs. 1 crore, then a tax audit is required. 2. Cash transactions:\u2026 <span class=\"read-more\"><a href=\"https:\/\/vibrantfinserv.com\/kb\/tax-audit-criteria-for-engineer\/\">Read More &raquo;<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":13382,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2540],"tags":[41,3067,1679],"class_list":["post-14153","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-audit","tag-compliancecriteria","tag-engineertaxation","tag-taxaudit"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tax Audit Criteria for Engineer\/ Article\/ VibrantFinserv<\/title>\n<meta name=\"description\" content=\"The key criteria that determine whether an engineer is required to undergo a Tax Audit Report are as follows:-\" \/>\n<meta name=\"robots\" content=\"index, follow, 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