Tax Audit Deadline: Big news! Last date for submission of income tax audit has been announced

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New Delhi: According to the Income Tax Act 1961, some taxpayers compulsorily have to get their account books income tax audited. Income tax audit is the process of in-depth inspection of the books of accounts of a business entity or a professional person.

The government’s mandate for income tax audit among business firms and professionals crossing specific income limits shows commitment to financial transparency and accountability. It ensures accuracy of financial records and ITR and reflects reported income and expenses with correct financial activities. At the same time, such audits also work to prevent tax evasion.

Chartered accountant Sandeep Agarwal, director of financial regulation firm TeamLease RegTech, said tax audit reports deter entities, companies from misrepresenting income or inflating expenses to reduce tax responsibilities. Government prevents tax evasion through audit of ledger.

What is the last date for submission of Tax Audit Report?

Vijay Bharech, director at tax consultancy firm Deloitte Haskins & Sells LLP, explained that a taxpayer who is required to obtain the tax audit report should obtain the accounts and audit report on or before September 30 of the relevant assessment year. ,

For example, if a person needs to get a tax audit done in the financial year 2022-23 due to higher business or professional income, he should get the audit done by 30 September 2023 and report it to the Income Tax. Upload the report on the ITR portal by the same date.
Last date for filing ITR with audit report

It is important to understand that different categories of taxpayers are given different time limits for filing income tax returns. Aditya Chopra, partner at Mumbai-based law firm Victoria Legalis Advocates & Solicitors, said taxpayers who need to submit audit reports have set October 31, 2023 as the last date for assessment year 2023-24. This due date is applicable to those taxpayers who are required to get their accounts audited as per section 44AB.

For example, suppose a person has business or professional income exceeding the prescribed limit and is required to undergo income tax audit in the financial year 2022-23 (Assessment Year 2023-24). Then such a person will have to get his accounts audited by 30 September 2023 and file his ITR along with the audit report by 31 October 2023.
Who should be appointed to conduct tax audit?

It is important to note that a taxpayer who is mandated to undergo income tax audit needs to appoint two different chartered accountants. A Chartered Accountant is required to manage the accounting, day to day work. Whereas, for the purpose of tax audit, another chartered accountant is required to inspect the ledger draft. A chartered accountant conducting tax audit cannot manage the day-to-day operations of the same taxpayer. Tax Audit Report is required to be e-filed by a Chartered Accountant.

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