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Accept / Reject Tax Audit Report on Income Tax e-Filing Portal

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Akash Jhaveri

Income Tax Account
Tax Audit
Tax Audit Report
Last updated on July 2nd, 2021

If a taxpayer is liable to audit as per Section 44AB of the Income Tax Act, he/she must appoint a Chartered Accountant in practice to conduct a tax audit. The CA would prepare and upload Tax Audit Report on income tax e-filing portal. Once the CA files the report, the taxpayer should accept or reject the Tax Audit Report. The taxpayer can then file the Income-Tax Return.

Steps to Accept / Reject Audit Report

An assessee needs to follow the below steps to accept/reject the Audit Report.

  1. Login to Income Tax E-Filing Portal

    Log in to the Income Tax E-Filing Portal using valid username and password.

  2. Navigate to ‘For your Action’

    Go to Worklist > For your Action to directly navigate to the pending action of approving or rejecting the Audit Report.Approve / Reject Tax Audit Report - Navigate on Income Tax E-filing Portal

  3. View Uploaded Form Details

    Click on ‘Click Here (View uploaded Form Details)’ to view the details of the report uploaded.

  4. Select Assessment Year and Form Name

    Select the Assessment Year and select the Form Name from the drop-down list.Approve / Reject Tax Audit Report - Select Assessment Year and Form Name

  5. Click on View Form

    To download the audit report and attachments like Balance Sheet and Profit & Loss Statement, click on View FormApprove or Reject Tax Audit Report -View Form

  6. Select Accept or Reject

    Here, you have the option to either accept or reject the report. Approve or Reject Tax Audit Report - Accept / Reject

  7. Generate Signature File in order to Accept/ Reject

    First Register your DSC and then navigate to ‘Submit ITR/Form Online’ in the utility and
    a. Select the option USB Token
    b. Select USB Token Certificate from the drop-down
    c. Click on ‘Generate Signature File’
    d. Enter the USB Token PIN. Click on ‘Ok’DSC Management Utility - Sign using USB Token

  8. Signature file generated

    After the signature file is generated, save it in the appropriate folder.

  9. Select Accept – Attach Signature File

    Attach DSC (Digital Signature Certificate) file of the assessee to submit the form. Click on Submit.Approve / Reject Tax Audit Report - Attach Digital Signature File

  10. Select Reject – Enter Comments

    If the assessee selects ‘Reject’, mention the reasons under the ‘Rejection Comments’ column. Click on Submit.Approve / Reject Tax Audit Report - Rejection Comments

Once the assessee approves the audit report, the filing process is complete and it would be taken up for processing by the tax officer. In the case of a rejection, the CA has to upload the audit form again after making the necessary changes.

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When is Tax Audit required?

Tax Audit is required when the turnover of a taxpayer exceeds Rs. 1 cr in a particular Financial year. Filing Tax Audit is compulsory in order to file ITR. Tax Audit can only be filed by a CA.

What happens if I don’t submit my Audit report?

Taxpayers are required to submit a Audit report filed by their CA u/s 44AB. However, if the taxpayer fails to get his accounts audited, then he/she will be liable for penalty under section 271B. The penalty shall be levied 1.5% of the total sales of INR 1,50,000 whichever is less.

Got Questions? Ask Away!

  1. Hey @TeamQuicko

    Can you tell me about ITD’s new ITR filing utility for AY 2021-22?

  2. Hey @HarshitShah

    To improve the tax filing process, the Income Tax Department has decided to do away with the excel and java-based utility and has launched a new offline JSON-based utility for the AY 2021-22. The new utility will help taxpayers import prefilled data and edit it before filing the income tax return (ITR).

    The taxpayers can download the pre-filled data from the income tax e-filing portal and fill in the rest of the data. This imported prefilled data can be edited to change basic information such as address and all. Currently, the utility can be used to file ITR1 to ITR 4. ITD has also released a step-by-step guide to using the utility.

    Hope this helps! :slight_smile:

  3. Is it possible to file ITR online without an account on the Income Tax e-filing portal?

  4. What should be done in case of discrepancies in actual TDS and TDS credit under Form 26AS?

  5. Hey @Amitabh_Verma

    It is mandatory to create an account on the Income Tax e-filing portal to file your ITR online. It is a hassle-free quicko process. One can register on the portal by providing relevant details such as user type, PAN, first name, surname, date of birth, and fill in the registration form.

  6. Hey @Niraj

    Many times mismatches and discrepancies in actual TDS and TDS credit under Form 26AS happen because of wrong information provided in the TDS return. One can approach the employer/deductor to file a revised TDS return after making the necessary corrections.

    The income-tax department allows an assessee to mention the reason for mismatch in the online portal in answer to a notice sent by them.

    Hope this helps! :slight_smile:

  7. Hi, actually I filed ITR 1(A.Y. 2013-14) due to notice served in Jan month.

    The ITR is pending for verification. Ask the options aren’t available for me client i.e Aadhar verification,evc etc. Only thing is I got my clients DSC. but option of DSC for e-verification is not showing. I can’t send CPC to Bengaluru since it will take time. How can I use DSC to e-verify my already filed return

  8. Hi @Arsheen

    The option to e-verify ITR using DSC is to be selected while filing. Once you have filed your ITR only option available for e-verification is EVC/Aadhar OTP or sending ITR V to CPC Bangalore. You have 120
    days from the date of e-Filing to e-verify your ITR.

    So if 120 days are not over you can send the signed ITR V to CPC Bangalore to get it e-verified and processed.

    Hope this helps :slightly_smiling_face:

  9. Hi @Sharath

    It is suggested to file ITR as NRI in India if you have trading transactions even if there are losses.
    If you do not file ITR then there are high chances of your PAN getting flagged by the IT department for non-filing of ITR.
    Also, If you file the ITR on time you can take benefit of carry forwarding the losses and setting off those losses against the profits in future years.

  10. One of a female person source of income details mentioned below in f.y.20-21.
    1.income from home tuitions rs:1,20,000/-
    2.interest income from cash debtor rs:50,000/- gift from mother rs:1,50,000/-
    Assess it returns filed mandatory in f.y.20-21.

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