Section 44AB of the Income Tax Act, 1961 provides for the filing of a tax audit report. This section specifies certain conditions. Taxpayers who fall under these conditions are required to file an audit report. The deadline for filing the audit report for such taxpayers is September 30.
Tax Filing: The last date for filing income tax returns for taxpayers who were not required to get their accounts audited was September 15. The Income Tax Department later extended this deadline by one day. For taxpayers who are required to get their accounts audited, the last date for filing the audited return is September 30. The question is, which taxpayers fall under this category? What happens if the audit report is not filed by this date?
What is a Tax Audit Report?
The provision for a tax audit report is included in Section 44AB of the Income Tax Act, 1961. This section specifies certain conditions. Taxpayers who meet these conditions are required to file a Tax Audit Report. If you run a business and your turnover is more than ₹1 crore, you must file a tax audit report. However, if 95% of your transactions are digital, the turnover limit increases to ₹10 crore. This is because the government wants to promote cashless transactions.
Which professionals are covered by this?
If you are a freelancer or a professional such as a doctor, lawyer, architect, or chartered accountant, and you practice independently, you are required to file a tax audit report if your annual income exceeds ₹50 lakh. Similarly, taxpayers under the presumptive taxation scheme (Section 44ADA) are also required to file an audit report under certain circumstances. If a taxpayer under the presumptive taxation scheme declares an income lower than the prescribed rate, they must file a tax audit report.
Who can benefit from the presumptive taxation scheme?
Tax expert and chartered accountant Balwant Jain said, “Only taxpayers belonging to certain professions can avail the presumptive taxation scheme under Section 44ADA. Under this scheme, 50% of their gross receipts is considered as their income. The condition is that their gross receipts should not exceed ₹50 lakh. The ₹75 lakh limit applies in cases where the share of cash receipts is not more than 5% of the total receipts.”
Are taxpayers under the presumptive taxation scheme also required to file an audit report?
Jain said, “If a taxpayer claims that their actual income is less than 50%, they will have to maintain books of accounts and get their accounts audited.” The presumptive taxation scheme benefits certain professionals, including doctors, lawyers, chartered accountants, company secretaries, cost and management accountants, engineers, architects, and professionals in the film industry.
Add informalnewz.com as a Preferred Source
DISCLAIMER
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at informalnewz@gmail.com
