Tax Audit.
Anoop Shrivastava (Free Lancer) (476 Points)
17 July 2008
Can Any one tell me about tax audit. That what is tax audit and why it was necessary.
8 Replies
CA Anand Sarda
(Working)
(1580 Points)
Replied 17 July 2008
| Originally posted by :Anoop | ||
| " | Can Any one tell me about tax audit. That what is tax audit and why it was necessary. | " |
Under sec 44AB of Income Tax Act, 1961, A person has to get his books of accounts audited by a Chartered Accountant, if his sales is more than 40 Lakhs.
Prasanna.Rm
(Finance Pro)
(110 Points)
Replied 18 July 2008
Annop
added to the above,if the person is a professional,then the threshold limit is Rs.10 lakhs.
for a detailed understanding,
log in to that sec
Satyendra sahu
(service)
(216 Points)
Replied 18 July 2008
Hi Anoop,
Tax audit is the requirement by Income tax act. Conditions are already mentioned in above replies.
Tax audit is the questionair of some 30 to 32 questions in prescribed form. While Tax audit we have to answer all those questions on the basis of our observations.
meghraaj
(Student)
(46 Points)
Replied 23 July 2008
Hi Anoop,
See this audit is goverened by Sec 44AB.Plz refer this Sec in the Income Tax Book.
This audit is done to check whether the income tax act has been followed or not in the form of application of income tax sections. we need to give tax audit report in form 3CA and particulars of statement in 3CD. Tax auditor carries audit to check whether the related sections have been coplied or not.
Further queries are welcomed.
meghraaj
(Student)
(46 Points)
Replied 23 July 2008
Hi Anoop,
See this audit is goverened by Sec 44AB.Plz refer this Sec in the Income Tax Book.
This audit is done to check whether the income tax act has been followed or not in the form of application of income tax sections. we need to give tax audit report in form 3CA and particulars of statement in 3CD. Tax auditor carries audit to check whether the related sections have been coplied or not.
Further queries are welcomed.
GIRISH KUMAR MITTAL
(Chartered Accountant)
(96 Points)
Replied 05 August 2008
As per section 44AB of the Indian Income Tax Act,1961 Tax Audit is required in the following cases.
1. If the sales/turnover of the business exceeds the limit of Rs. 40 Lacks.
2. If the recipts of the professionals specified u/s 44AA exceeds the prescribed limit of Rs. 10 Lacks.
3. If the assessess covered under section 44AD/AE/AF shows their income below the respective prescribed percentage( 8% u/s 44AD,5% u/s 44AF)
Devendra Goyal
(Service)
(24 Points)
Replied 07 August 2008
Dear Ashok Jain,
In Companies Act 1956 Sec 226 there are some disqualifications for Auditors
for which they cannot be act as Auditor
Please read for your query.
Regards,
C.A.Devendra Goyal
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