Tax Audit Applicability For Financial Year 2019-20 (Assessment Year 2020-21)
Tax Audit Applicability For Financial Year 2019-20 (Assessment Year 2020-21) Under section 44AB of the Act, every person carrying on business is required to get his accounts audited, if his total sales, turnover, or gross receipts, in business exceed or exceeds one crore rupees in any previous year.
Meaning of Tax Audit
Examination and assessment of books of accounts of an organization carrying business or profession are called Tax Audit. Tax audit helps in review of transactions related to income, expenses, deductions, and taxes of the organization. It eases out the process of filing the income tax return for taxation purpose. Tax audit is done by a chartered accountant and reported to the income tax department in a prescribed format.
A tax audit is an examination of your tax return by an outside agency to verify that income and deductions filed are accurate. The income tax law asks the taxpayers to get the audit of accounts of their business or profession done according to provision of income tax law.
Tax Audit Applicability
Following assessee are required to get their accounts audited by a chartered accountant and to furnish (electronically) the audit report in a specified form on or before due date of furnishing return: