In India, there are various laws that are issued in order to govern various types of audits such as a stock audit, statutory audit, cost audit etc. The main purpose behind the conduction of these audits is to make sure that the books of accounts of an organisation or a person are free from any sort of errors that are mentioned in a particular law of a particular field. In the same way, in the field of income, we have a tax audit which is conducted under Section 44AB of Income Tax Act.
The books of accounts that are maintained by various taxpayers are verified using a tax audit under section 44AB of Income tax act. This tax audit needs to be carried out by a certified Chartered Accountant. In this blog, we will discuss the various concepts of tax audit like tax audit limit, its applicability, its penalty and the due dates related to it under Section 44AB of income tax act.
All the provisions related to a tax audit have been mentioned under Section 44AB of Income Tax Act. As per these provisions, a tax audit is required to be done by the people listed below in order to maintain proper regulation of income tax laws:
Under Section 44AB of Income Tax Act, the due date for filing and completing a tax audit report is 30th September of the year in which the tax audit is going to be done. This means that in order to obtain a tax audit under Section 44AB of Income Tax Act, a taxpayer needs to file the income tax return either on 30th September or before 30 th September along with his tax audit report. If the assessee is also chargeable for transfer pricing audit, then the due date will be 30th November of the assessment year for filing a tax audit under Section 44AB of Income Tax Act.
If someone has to necessarily get a tax audit done but fails to do so due to some circumstances, then he may have to face the following penalties which will be levied on him under Section 44AB of Income Tax Act:
But if the cause for the failure in the conduction of tax audit is justified and reasonable, then no penalty will be levied on the taxpayer under section 271B.
The causes that may be accepted by the courts are listed below: