Applicability For Financial Year 2019-20 (Assessment Year 2020-21)

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:      


Hope This Helps.

    • Related Articles

    • Tax Audit || Introduction And Applicability of Tax Audit For AY 2024-25

      Introduction: Taxpayers are required to maintain books of accounts and have them audited if their gross turnover or receipts during the previous year exceed the prescribed threshold limit. The requirement to maintain books of accounts is specified ...

    • Income Tax || Self Assessment tax

      Self Assessment Tax → Upon filing your income tax return, any TDS (Tax Deducted at Source) or advance tax paid during the financial year is offset against your total tax liability. If a balance remains due after this, it is classified as ...

    • Tax Audit || Import Tax Audit Report from Previous year - SYNTAX ERROR

      Root Cause of the error → The error is triggered when the client inputs special characters, such as an aapostrophe (') sign or backward slash (\) sign, while entering data in the previous year's records. Solution → To resolve this issue, the data ...

    • Income Tax || Auditor Information

      Navigate to "Transactions" → "Auditor Information". Enter Tax Audit Information: Financial Statement and Audit Report: Choose the format for Balance Sheet and Profit & Loss account (Vertical or Horizontal). Specify whether Tax Audit under section ...

    • Income Tax || How to Import Tax Audit Report (3CD)

      How to Import Tax Audit Report (3CD): 1. Import From Previous Year 2. Import From Other Client 3. Import From XML/JSON 1. Import From Previous Year: Step 1: Go to Audit >> Tax Audit >>New 3CD W.E.F 20.08.2018>> Click on "Import Tax Audit Report (Form ...