Income Tax Audit Due Date

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Maharshi Shah

Due date
Income Tax
Income Tax Filing
Tax Audit

The Tax Audit is an examination or review of accounts of any business or profession carried out by taxpayers. Thus, It makes the process of income computation for filing of return of income easier. Furthermore, the taxpayers are required to appoint a practicing Chartered Accountant to carry out the income tax audit of the books of accounts and file the tax audit report within the due date. Moreover, conducting the tax audit helps the taxpayer to achieve the following:

Therefore, all these enable tax authorities in verifying the correctness of income tax returns filed by the taxpayer. Calculation and verification of total income, claim for deductions, etc. also becomes easier

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Income Tax Audit Due Date for AY 2019-20

Therefore, the following table explains the due date to file the tax audit report of business for the different Financial Years. You can also refer to the below section to know the due date extension for the tax audit.

FY 2018-2019
FY 2019-2020
Category of Taxpayer Original Due Date Extended Due Date
Businesses Requiring Tax Audit 30th September 2019 31st October 2019
Category of Taxpayer Original Due Date Extended Due date
Businesses Requiring Tax Audit 30th September 2020 31st October 2020 

Income Tax Audit Due Date Extension

The Finance Minister Nirmala Sitharaman has announced that the income tax audit due date of the current Financial Year has been extended to October 31, 2020, from September 30, 2020.

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Categories of Taxpayers for Whom Tax Audit is Mandatory

Taxpayer Condition for Tax Audit
Business
  • Turnover is up to INR 1 Cr, Income is less than 6% or 8% of Turnover and Total Income exceeds the Basic Exemption Limit
  • Turnover is between INR 1 Cr and INR 2 Cr and Income is less than 6% or 8% of Turnover
  • Income is more than 6% or 8% of Turnover and taxpayer does not opt for Presumptive Taxation Scheme under Sec 44AD
  • Sales or Turnover or Gross Receipt exceeds INR 2 Crore
Profession
  • Gross Receipts exceeds INR 50 Lakhs
  • Income from the profession is less than 50% of Gross Receipts and Total Income exceeds the Basic Exemption Limit
  • The Income is more than 50% of Gross Receipts and the taxpayer does not opt for Presumptive Taxation Scheme under Sec 44ADA
Check Tax Audit Applicability u/s 44AB
Check Income Tax Audit applicability u/s 44AB to file Tax Audit Report Form 3CB - 3CD with your Income Tax Return.
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Check Tax Audit Applicability u/s 44AB
Check Income Tax Audit applicability u/s 44AB to file Tax Audit Report Form 3CB - 3CD with your Income Tax Return.
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Income Tax Audit Report

Tax auditor shall furnish reports in a prescribed form which could be in the following Forms:

Income Tax Return Filing Due Dates
Here is an article that explains the income tax return filing due dates
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Income Tax Return Filing Due Dates
Here is an article that explains the income tax return filing due dates
Read More

FAQs

What is tax audit limit?

As per Section 44AB of the Income Tax Act, 1961, tax audit limit for professionals, businesses and presumptive taxation scheme are:

– Business: Tax audit for businesses pertains to those whose gross receipts or total business sales turnover exceeds INR 1 Crore in the previous assessment year.
– Profession: Tax audit is applicable if gross receipt in the concerned profession is more than INR 50 Lakhs in any of the previous assessment years.
– Presumptive Taxation Scheme: Individuals enlisted under the presumptive taxation scheme under Section 44AD and total sales or turnover exceeds INR 2 Crores.

Also, any individual enlisted under the presumptive taxation scheme claiming that the gains of the business are lower than the gains calculated as per the presumptive taxation scheme.

What is the penalty for non-compliance of tax audit?

Non-compliance of tax audit regulations by taxpayers attracts a penalty of whichever is lower from the following:

– 0.5% of total sales or
– Turnover or
– Gross receipts or
– INR 1,50,000

What is the extended date for tax audit?

The Central Board of Direct Taxes (CBDT) has extended the date of filing returns of income tax cases that need to be audited by a month to 31 October. The earlier deadline was 30 September. 

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