A tax audit is an examination of an organization’s or individual’s tax return to verify that financial information is being reported correctly. While the chances of being singled out for closer scrutiny are statistically low, there are factors that could increase your odds of receiving an audit notice. Fortunately, there are measures you can take now to minimize future problems.
Objectives of tax audit
- Ensure proper maintenance and correctness of books of accounts and certification of the same by the tax auditor
- Reporting of observations noted by tax auditor after an examination of books of account
- Reporting of information such as tax depreciation, compliance of various provisions of income tax law etc.
- Saves the time of Tax authority in verifying the correctness of Income tax return filed by Taxpayer.
Who are subject to Tax Audit Threshold limit
- Carrying on business (Without presumptive scheme) 1 crore
- Carrying on business (opting presumptive scheme) 2 Crore
- Carrying on profession 50 Lakhs
India Tax Hub will help you out to discharge your statutory requirements.