04 February 2018
What is a tax audit report in simple language. Is it different from Audited Balance sheet.? What is the difference. Is tax audit necessary. For whom is it necessary.. I am from non commerce background. Can any one please guide me in a simple language.
04 February 2018
Yes it's different from audited balance sheet. Tax audit applicable when the business turnover exceed 1 crore and for services it exceeds 50 lacs. Tax audit report to be submitted by auditor in the e filing income tax portal after income tax return is filed. The tax audit report help the AO in processing return. Tax audit report ensure correct tax working and tax compliance.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
04 February 2018
Thnx sir. Sir when a balance sheet is already Audited I mean when ABS is prepared, then why we need tax audit report? And if Tax audit is compulsory for certain businesses, then why we should first prepare ABS ,why can't we leave ABS and rather prepare tax audit directly which will save time. Pls enlighten.
04 February 2018
Balance sheet audit is based on companies Act requirements. The tax audit is requirement of Income tax Act. Tax working starts from balance sheet audit profit. Depreciation as per compnies Act and income tax differs hence profit has to be reworked and certain disallowance like income and penalty has to be made under tax working.