A tax audit is an official inspection of an organization’s accounts and production of a report, typically by an independent body ¹. Here are some key points related to tax audits:

– Objectives of Tax Audit: The main objectives of a tax audit are to verify the correctness of income tax returns filed by the taxpayer, calculate and verify total income, and claims for deductions ¹.

– Who Needs to Conduct a Tax Audit: A taxpayer is required to have a tax audit carried out if the sales, turnover, or gross receipts of business exceed Rs 1 crore and in case of profession exceed Rs 50 lakhs in the financial year ¹.

– Forms for Tax Audit: The tax auditor shall furnish his report in a prescribed form which could be either Form 3CA or Form 3CB where, in case of either of the aforementioned audit reports, the tax auditor must furnish the prescribed particulars in Form No. 3CD ¹.

– Penalty for Non-Compliance: If any taxpayer is required to get the tax audit done but fails to do so, the least of the following may be levied as a penalty: Rs 1.5 lakh or 0.5% of turnover ¹.

– Due Date for Filing Tax Audit Report: The due date for filing the Tax Audit report is 30th September following the relevant financial year.

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