Tax Audit Services

Tax Audit Services

At Bhanushali & Bhanushali, we provide expert tax audit services under the Income Tax Act 1961, ensuring compliance for both corporate and non-corporate entities. Our approach goes beyond just meeting legal requirements; we focus on enhancing operational efficiency and optimizing tax strategies.

We believe tax audits should add value to your business, not just fulfill a compliance need. Our team offers personalized insights to help streamline your financial management and reduce risk.

1. Which key activities are performed during a tax audit under the Income Tax Act, 1961?

• The auditor reviews financial statements, authenticates details, and follows a checklist for Form 3CD reporting.
• They verify the completeness of the taxpayer's information and examine relevant documents.
• The audit report, filed in Form 3CA or 3CB, is submitted via the e-filing portal, with discrepancies flagged.

Under Section 44AB of the Income Tax Act, 1961, businesses and professionals must undergo a tax audit if their turnover or gross receipts exceed specified limits:
• Business: If turnover exceeds ₹1 crore (or ₹5 crore if cash receipts/payments are below 5%), a tax audit by a Chartered Accountant is mandatory.
• Profession: For gross receipts above ₹50 lakhs, a tax audit is required.

Under Section 44AD, businesses with receipts under ₹2 crores can pay tax on a deemed profit of 6% (8% for cash), with no accounting required. Opting out for five years makes them ineligible for the scheme.
Under Section 44ADA, professionals with receipts under ₹50 lakhs can treat 50% of receipts as net income. If actual profit is lower, a tax audit under Section 44AB is required.
If an entity’s accounts are audited under other laws, the presumptive taxation scheme is not applicable.