Generally in the minds of individual tax payers, there is lack of clarity with regard to audit requirements and also sense of apprehension. Taxpayers consider audit requirement as very tough and stringent. We have summarised the provisions of tax audit in case of individual tax payers. Read on:
Persons required to get their accounts audited:
(A) Person carrying on business, if the total sales, turnover or gross receipt in business for the previous year relevant to assessment year exceeds Rs. 60 lacs;
(B) Person carrying on profession, if his gross receipts in profession for the previous year relevant to the assessment year exceeds Rs. 15 lacs;
(C) Person covered under section 44AE, 44BB, 44BBB or 44AD (presumptive taxation), if such person claims that the profits and gains from the business are lower than the profits and gains computed in accordance with the provision of these sections.
Please note that section 44AB is not applicable in the case of assessees, under the preview of section 44B or 44BBA
Due date for getting books audited/ submission of audit report
The due date for getting books of audited and submission with the IT department is 30th September of the assessment year. Thus for Financial Year 2010-11, the due date for audit is 30th September 2011.
Further, please note following important points
The report of audit under section 44AB is not to be attached with the new scheme of online filing of tax returns. It should neither be furnished separately, also before the due date. Previously, it was required to be submitted along with the tax returns in hard copy before the due date.
The assessee should get the report and retain it, for furnishing at the time of assessment proceeding in original, if asked to.
Thus, here filing of tax returns become very important and filing of same within the due date is construed as complying with the above provisions.
Penalty for non-compliance
If any person fails to get his accounts audited in respect of any previous year or fails to furnish a tax audit report to the tax officer, then such person shall be directed to pay a penalty of a sum equal to one-half per cent of total sales / gross turnover or Rs. 1,50,000, which ever is less.
Tax Returns for Financial Year 2010 -11 (March 2011) has started. Request you to please visit Taxmantra.com or mail us Form16/ Salary Certificate and details of other income, at firstname.lastname@example.org . We would take it from there to file your return of income.
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