1 crore during the previous year. To reduce the compliance burden on small and medium enterprises, the Finance Act, 2020, effective from the assessment year 2020-21, has increased the threshold limit under section 44AB for the mandatory audit for a person carrying on business from Rs. 1 crore to Rs. 5 crores.
The Finance Act 2020 had increased the tax audit limit for a person carrying on business from ₹1 crore to ₹5 crore, subject to a condition that cash receipts and cash payments during the year do not exceed 5 per cent of the total receipts/payments. The Finance Act 2021 further increased this limit to ₹10 crore.
The due date for filing income tax returns for assessment year 2021-22 has been extended till March 15, 2022. The Central Board of Direct Taxes (CBDT) on Tuesday extended the due date for filing income tax returns for assessment year 2021-22 till March 15, 2022 for some categories of taxpayers.
Finance Act 2020: The threshold limit of Rs 1 crore turnover for a tax audit is proposed to be increased to Rs 5 crore with effect from AY 2020-21 (FY 2019-20) if the taxpayer's cash receipts are limited to 5% of the gross receipts or turnover, and if the taxpayer's cash payments are limited to 5% of the aggregate ...
Any business where the total sales, turnover, or receipts exceeds Rs. 1 crore in a year should have a tax audit in India. As a professional, receipts over Rs. 50 lakh makes you eligible for a tax audit.
Under the I-T Act, taxpayers are required to get their accounts audited if the sales, turnover or gross receipts of business exceed Rs 10 crore, while in case of professionals, the limit was over Rs 50 lakh in 2020-21 (AY 2021-22).
Threshold Limit for Audit under GST by CA/CMA
As per the current notified GST Rules, the turnover limit is above Rs 2 crore^. Such businesses must get their books of accounts audited by a chartered accountant or a cost accountant.
The Central Board of Direct Taxes (CBDT) has extended the due dates for filing tax audit reports and income tax return for certain category of taxpayers for FY 2020-21. This was announced by the income tax department via a press release issued on January 11, 2022.
2. The due date of furnishing of Report of Audit under any provision of the Act for the Previous Year 2020-21, which was 31st October, 2021, in the case of assessees referred in clause (aa) of Explanation 2 to sub-section (1) of section 139 of the Act, is extended to 15th February, 2022; 3.
a. Login with the user id and password of the CA and go to “upload form” under “e-file” menu. b. Fill out required details and upload the XML file of Tax Audit report & PDF file of Balance Sheet and Profit & Loss Account (The maximum size of PDF documents to be uploaded is 20MB).
Those who have not filed their Income Tax Return (ITR) for the financial year 2020-21 or assessment year (AY) 2021-22, will now have to file Belated return before March 31. This year's ITR will be filed for AY 2021-22 or FY 2020-21. ITR applicable for income earned between April 1, 2020 and March 31, 2021.
Typically the deadline for submitting your own tax return is October 31 each year. Because October 31 falls on a Sunday this year, the effective last day to lodge a return is the following Monday, on November 1, 2021.
So while preparing Form 3CD , assessee has to indicate under which clause, tax audit is applicable. ... So voluntary furnishing of Tax Audit Report is not possible.
It is important to note that, Chartered Accountants have a limit on the number of tax audit reports that can be filed. The maximum number of tax audits that can be undertaken by a Chartered Accountant is limited to 60.
If Loss occurred and Total Taxable Income is below threshold limit (2.5 lakh for non senior citizen and 3 lakh for senior citizen), No Tax Audit required. If Loss occurred in Business and Total Taxable Income exceeds threshold limit, Tax Audit required.
But after the introduction of annexure less forms i.e ITR4, ITR5, ITR6 etc., the Tax Audit Report is not required to be submitted along with the Return of Income nor it is to be submitted separately any time before or after the due date.
The report shall be uploaded directly by the tax auditor at https://www.incometax.gov.in/. However, to furnish the report, the assessee has to authorise and appoint the Chartered Accountant from his e-filing account.
– The due date of furnishing of Report of Audit under any provision of the Act for the Previous Year 2020-21, which is 30th September, 2021 as extended to 15th January, 2022 should be further extended to 15th March, 2022.
Tax audit is a cross-examination of the books of accounts of the taxpayer by a Chartered Accountant (holding full-time Certificate of Practice) under the Income Tax Act 1961. Section 44AB deals with the conditions under which Tax audit becomes mandatory for some taxpayers.
"turnover" means the gross amount of revenue recognized in the profit and loss account from the sale, supply, or distribution of goods or on account of services rendered, or both, by a company during a financial year.
ITR-1, also known as Sahaj Form, is for a person with an income of up to Rs. 50 lakh. Aadhaar Card is Mandatory for Income Tax Return Filing. The Income Tax Department has made it mandatory for all taxpayers to link the Aadhaar card with PAN on the Income Tax Department website.
The need for a GST audit by CA/CMA stands removed for FY 2020-21 and any later financial years. Every applicable taxpayer must submit a self-certified reconciliation statement by reconciling values between the audited financial statements and the annual returns.
A business whose aggregate turnover in a financial year exceeds Rs 20 lakhs has to mandatorily register under Goods and Services Tax. This limit is set at Rs 10 lakhs for North Eastern and hilly states flagged as special category states.
As per the GST Laws, it has been mentioned that two or more Chartered Accountants can be appointed as GST Auditors in the company by the registered person. They are also called as Joint Auditors and together conduct the GST Audit of the company.