Audit requirements for individual taxpayers

Tax audit is done u/s 44AB of the Income Tax Act, 1961 to minimise the burden of Assessing Officer (A.O.) because the auditors are required to point out the violations made by the assessee in respect of various expenses, loans taken or refunded, payments to relatives etc. which are not permissible as per the Income Tax Act.

If the gross receipts of a person carrying on profession exceeds Rs. 15 lacs (Rs. 10 lacs upto the assessment year 2010-11) or Rs. 60 Lacs (Rs. 40 lacs upto the assessment year 2010-11) in case of any person engaged in business  in any previous year is required to compulsory audit of accounts.

Due date for getting books audited and submission of audit report is September 30 of the assessment year and the assessee should obtain before the said date, a report of audit from a chartered accountant in the Form No. 3CD.

The report of audit u/s 44AB is not to be attached with new return forms. It should not be furnished separately also before or after the due date. However, an assessee should get the report of audit before the due date of the furnishing of the return and should fill out the relevant columns of return forms on the basis of such report. The assessee should retain the report with himself. It may be furnished in original during the assessment proceedings.

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