Tax audit for individual business person

JURO LEGAL provides comprehensive Income Tax Audit services for individual businesses since 2009. Our expert team ensures compliance with tax regulations, offering reliable and accurate audit solutions tailored to meet your specific business needs.
1. Cost effective Legal Services
2. Well Qualified Team
3. Fast & Quick Process
4. Free Consultations
5. 100% Customer satisfaction
6. Anywhere in India
7. Our Experts Handle Everything for you
8. No Hidden Charges

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  • A tax audit is a procedure conducted to ascertain whether the financial records maintained by a taxpayer adhere to the generally accepted accounting principles and the regulations outlined in the Income-tax Act. Its purpose is to validate the accuracy of the financial records and ensure that the taxpayer’s actual income is correctly calculated. Additionally, it serves to detect any instances of fraudulent activities. It’s important to note that undergoing a tax audit does not exempt the taxpayer from further scrutiny, assessment, or disallowance of expenses. Furthermore, only a practicing Chartered Accountant is authorized to conduct a tax audit.

Under section 44 AB of the Income Tax Act, audit of accounts is compulsory if: Your business’s gross turnover exceeds Rs. 1 crore in any preceding year, or if your profession’s gross receipts are more than Rs. 50 lakh in any preceding year

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:

  • 0.5% of the total sales, turnover or gross receipts
  • Rs 1,50,000

However, if there is a reasonable cause of such failure, no penalty shall be levied under section 271B.

So far, the reasonable causes that are accepted by Tribunals/Courts are: 

  • Natural Calamities
  • Resignation of the Tax Auditor and Consequent Delay
  • Labour problems such as strikes, lock-outs for an extended period
  • Loss of Accounts because of situations beyond the control of the Assesses
  • Physical inability or death of the partner in charge of the accounts

  • Form No. 3CA/3CB serves as an audit report template, while Form 3CD functions as a statement containing specific details mandated by Section 44AB of the Income-tax Act. If the taxpayer is obligated to undergo an audit of their financial records under any other legislation, it is satisfactory for them to conduct the audit according to that law’s requirements. Subsequently, they must furnish both the audit report as per that law and reports in Form 3CA and 3CD, completed by a Chartered Accountant, within the stipulated deadline.

The major objectives for conducting tax audit are:

  • Proper maintenance of books of the account without fraud activities and certification of the same by an auditor.
  • For reporting discrepancies noted by proper examination of the books of accounts.
  • For reporting various information such as tax depreciation, compliance with the provision of income tax law, and so on.
  • Computation of tax and deductions becomes easy with auditing.
  • The major role is to verify the information filed in the income tax return regarding income, tax, and deductions by the taxpayer.