Income tax audit
This query is : Resolved
11 July 2015
hi please give response to my query, If asessee has not get audited their books of account within due date and also not in reasonable time so now wether he can do so the same after six month at the end of due date?
11 July 2015
ASSESSEE HAS TO GET HIS BOOKS OF ACCOUNTS AUDITED IF THE CRITERIA OF 1CRORE FOR BUSINESS AND RS.25LAKH FOR PROFESSION FULFILLED IF HE FAILED TO GET ITS ACCOUNT AUDITED THEN IT WILL IMPOSED PENALTY.
OK PIYUSH
Regards,
Sandeep Jadhav
OK PIYUSH
Regards,
Sandeep Jadhav
16 July 2015
Ok sir but my question is if tunover of business is less than 1 crore rs. and profit is also less than 8% and assessee has not yet get their books of account audited so wether he has any option to get their books of account audited for AY 2014-15 if yes than how??
31 July 2024
If an assessee has not gotten their books of accounts audited within the due date (usually 30th September of the assessment year for a business), and the turnover is less than ₹1 crore with a profit below 8%, here are the points to consider:
### **1. Audit Requirement and Due Dates**
- **Audit Requirement:**
- For businesses with a turnover exceeding ₹1 crore, an audit is mandatory under Section 44AB. If the turnover is less than ₹1 crore and the profit is below 8% of the turnover, the audit requirement is generally not applicable.
- **Due Date for Audit:**
- The due date for getting the accounts audited for a financial year (FY 2013-14 for AY 2014-15) is typically 30th September of the assessment year.
### **2. Options if Audit Not Done on Time**
- **Late Audit:**
- If the books of accounts were not audited by the due date, the assessee can still get them audited but may face penalties and implications. An audit after the due date can still be valid, but late compliance does not absolve the taxpayer from penalties.
- **Penalties:**
- **Section 271B:** If a taxpayer fails to get their accounts audited by the due date, a penalty under Section 271B may be imposed. This penalty is generally ₹1,50,000 or 0.5% of the turnover, whichever is lower.
- **Section 139(4):** If the return was not filed on time, a belated return can be filed under Section 139(4) before the end of the assessment year.
### **3. Filing and Compliance**
- **Filing a Belated Return:**
- If a return was not filed on time, a belated return can be filed under Section 139(4) before the end of the assessment year (i.e., before 31st March 2015 for FY 2013-14). The assessee can include the audited financial statements in the belated return.
- **Complications:**
- If the financial statements are audited and the return is filed late, the auditor’s report and other compliance documents must still be submitted.
- **Interest and Penalties:** Interest under Section 234A/B/C for late filing and other possible penalties may apply.
### **Steps to Take**
1. **Get the Audit Done:**
- Arrange for the audit of books of accounts immediately.
2. **File a Belated Return:**
- Submit a belated return including the audited financial statements.
3. **Prepare for Penalties:**
- Be prepared to pay any penalties and interest that might be levied for late filing and audit.
4. **Consult a Professional:**
- Consult a Chartered Accountant or tax advisor for precise guidance and to ensure all compliance requirements are met.
### **Summary**
- **Audit After Due Date:** Yes, it can be done, but there are implications including penalties.
- **Audit Requirement:** For a turnover less than ₹1 crore, audit is not mandatory, but it is advisable if the profit is below 8% and you wish to ensure compliance and avoid future issues.
- **Action Steps:** Get the audit done, file a belated return, and address any penalties or interest.
Consulting a tax professional is advisable to navigate through these steps effectively.
### **1. Audit Requirement and Due Dates**
- **Audit Requirement:**
- For businesses with a turnover exceeding ₹1 crore, an audit is mandatory under Section 44AB. If the turnover is less than ₹1 crore and the profit is below 8% of the turnover, the audit requirement is generally not applicable.
- **Due Date for Audit:**
- The due date for getting the accounts audited for a financial year (FY 2013-14 for AY 2014-15) is typically 30th September of the assessment year.
### **2. Options if Audit Not Done on Time**
- **Late Audit:**
- If the books of accounts were not audited by the due date, the assessee can still get them audited but may face penalties and implications. An audit after the due date can still be valid, but late compliance does not absolve the taxpayer from penalties.
- **Penalties:**
- **Section 271B:** If a taxpayer fails to get their accounts audited by the due date, a penalty under Section 271B may be imposed. This penalty is generally ₹1,50,000 or 0.5% of the turnover, whichever is lower.
- **Section 139(4):** If the return was not filed on time, a belated return can be filed under Section 139(4) before the end of the assessment year.
### **3. Filing and Compliance**
- **Filing a Belated Return:**
- If a return was not filed on time, a belated return can be filed under Section 139(4) before the end of the assessment year (i.e., before 31st March 2015 for FY 2013-14). The assessee can include the audited financial statements in the belated return.
- **Complications:**
- If the financial statements are audited and the return is filed late, the auditor’s report and other compliance documents must still be submitted.
- **Interest and Penalties:** Interest under Section 234A/B/C for late filing and other possible penalties may apply.
### **Steps to Take**
1. **Get the Audit Done:**
- Arrange for the audit of books of accounts immediately.
2. **File a Belated Return:**
- Submit a belated return including the audited financial statements.
3. **Prepare for Penalties:**
- Be prepared to pay any penalties and interest that might be levied for late filing and audit.
4. **Consult a Professional:**
- Consult a Chartered Accountant or tax advisor for precise guidance and to ensure all compliance requirements are met.
### **Summary**
- **Audit After Due Date:** Yes, it can be done, but there are implications including penalties.
- **Audit Requirement:** For a turnover less than ₹1 crore, audit is not mandatory, but it is advisable if the profit is below 8% and you wish to ensure compliance and avoid future issues.
- **Action Steps:** Get the audit done, file a belated return, and address any penalties or interest.
Consulting a tax professional is advisable to navigate through these steps effectively.
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