Each country has their own set of rules and regulations that needs to be followed by the people of the country. The same logic is applicable in a country like India where there are statutory books, for cost audits, audits or stock audits. These types of audits are undertaken under the expertise of audit service company in Pune so that the books are error- free. In addition, it should be in accordance with the income tax rules along with regulations that is under tax audit section 44 B.
Coming to the income tax audit it turns out to be the examination of the book of accounts by a professional. This is going to involve an assessment of all the deductions claimed, income earned under the assessment of income tax returns along with other provisions that fall under the income tax act. Some of the objectives of an income tax audit are as follows
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- For properly auditing the financial statements for tax purposes, there is a need to ensure that the books are properly maintained
- The book of accounts is going to showcase the true image of the shareholders and also inform the claims that may be made in relation to deductions
- The certification of all the books of accounts by a tax consultant for NRI
- All the essential form of deductions in the form of loans, depreciation, compliances are made within the provision of the income tax act. This is going to help in proper verification of the income, expenditure and deductions in any form that will arise.
Every taxpayer has to perform a tax audit if the figure goes on to exceed the sale of 1 crore every year. So, if you happen to be a person who falls in this category, you are liable to obtain income tax audit. A step-by-step approach for filing the income tax audit is as follows
- The chartered account is going to present the tax reports online by using their own log in detail. Even a chartered account needs to have an individual who has to be assigned, so that they may conduct audits for the entire organization or an individual.
- The taxpayers need to mention the details related to their accounts to the chartered account on the platform.
- Then the audit reports are uploaded by the chartered accountant. The taxpayer is provided with a couple of options, where they have to either accept the reports or choose to reject them. If they plan to reject the reports, then they have to complete the entire process all over again.
The reports can be filed by the firm of the accounts or the chartered account themselves. The reports need to be filled before the income tax due date. Normally the due date, is 30th November of a subquantum year who is involved in tax paying calculations for the upcoming year. Though the normal due date for the taxpayers is 30th of September every year.The threat of fraud to the integrity of an audit is one of the challenges confronting the auditors in the present era. Lack of proper procedures, controls or limited capacity may turn out to be stumbling blocks in the entire process. An organization that has an audit module in place, needs to have a robust set of audit risk controls. No longer there is going to be any form of confusion if you are explaining audit procedures to an auditor as it is clearly mentioned in the guide.