Tax Audit
As per section 44AB of Income tax Act,1961, every Persons in the previous year:
- Business with sales/turnover/gross receipts exceeding Rs.1 Crore
- Profession with sales/turnover/gross receipts exceeding Rs.50 Lakhs
- Business/profession covered under presumptive taxation who has claimed his income to be lower than the profit and gains deemed to be the profits and gains of business/ profession covered under the section 44AD (4) of the Income tax Act,1961.
Purpose
As India follows self-assessment method to assess income and taxes payable by a person, it is the responsibility of the person to follow all the rules prescribed under the Act. Tax Audit Service is a mechanism by which the Income Tax department would enforce the law effectively through an independent agency by ensuring that income declared in the return is accurate