The deadline has passed for some taxpayers. This was the deadline for submitting the Income Tax Audit Report, which ended on 30th September. The last date for tax filing (ITR filing) for these taxpayers is 31 October.
If you are also a taxpayer, then it is important for you to know that the deadline has passed for some taxpayers. This was the deadline for submitting the Income Tax Audit Report, which ended on 30th September. The last date for tax filing (ITR filing) for these taxpayers is 31 October. If you were also required to submit income tax audit report to pay tax and you have missed doing so, then now you will have to pay penalty. That means you can still submit the report, but with late fees. Let us know who has to get audited and how much is the fine.
Who has to get tax audit done?
Under Section 44AB of the Income Tax Act, if you do any business whose annual turnover is more than Rs 1 crore, then you will have to undergo tax audit. However, if you have availed the benefit of presumptive taxation scheme under Section 44AD and your turnover is less than Rs 2 crore, then you are not required to get tax audit done. Whereas if you provide a professional service and your annual gross receipt is more than Rs 50 lakh, you will still have to undergo tax audit.
Which documents are required?
It is necessary to have a cash book for tax audit, in which all cash receipts and payments are accounted for. Apart from this, you should have a journal book, which is maintained on the basis of mercantile accounting system. There should also be a ledger book in which debit-credit entries should be made. Not only this, there should also be carbon copies of all the bills. That means it is important for you to have all the documents related to the coming and going of money.
What will happen if tax audit is not done on time?
Whenever it comes to tax audit, two things should be kept in mind. The first is the audit report, for which you are required to get your accounts audited by 30th September. The second one is ITR, the last date for filing which is 31st October. Keep in mind that this ITR is for those people who are required to undergo tax audit. If a person is required to undergo tax audit, if he does not do so, his income tax return is considered defective. He is automatically sent a notice for defective ITR under section 139 (9). If a person does not get the tax audit done by the last date, he has to pay a fine.
How much penalty will have to be paid?
Under the Income Tax Act, if you submit the audit report late, you may have to pay a penalty of up to 0.5 percent of the total sales or turnover or gross receipts. Its fine can be a maximum of Rs 1.5 lakh. That is, if 0.5 percent of your sales comes more than Rs 1.5 lakh, then you will have to pay a fine of only Rs 1.5 lakh and if it comes less, then you will have to pay less fine.
