In India, the term tax audit means an audit of accounts of business as per the direct tax laws. It takes place under Section 44AB of the Income Tax Act, 1961. The primary purpose of this audit is to check whether the accounts of a business are prepared as per the tax laws.
The income tax act makes it compulsory for the following entities to have a compulsory tax audit:
- A person carrying on a profession, if his gross receipts are more than Rs. 50 lakhs.
- Any business earning Rs. 1 Crore or more per year.
- A person under presumptive taxation who claims a lower actual profit.
Only a Chartered Accountant is allowed to perform a tax audit.
PocketLawyer is India's leading platform for auditing services and we make the process of Tax Audit easy and hassle-free for you. In addition to Tax Audit, PocketLawyer can also help you with Secretarial Audit, Statutory Audit, Forensic Audit, Internal Audit, Audit of Cooperative Society, Audit of Charitable Trust and more.
Steps in Tax Audit
- Analyzing the internal situation of the company.
- Going through audit reports of previous years.
- Checking opening and closing balances.
- Conducting a detailed check of all the necessary documents.
- Examining various tax returns.
- Obtaining written representations from the management.
- Drafting working papers.
- Arriving at a conclusion.
Documents for Tax Audit
To facilitate smooth conduct of an audit, you will need the following documents and details:
- Lease agreement or rent agreement of the business.
- Sale and purchase registers of business.
- Fixed assets register.
- Calculations such as gratuity, pension, EPF etc.
- Bank Reconciliation Statement.
- Various returns such as VAT, service tax, excise etc.
Moreover, we will need various other details for completing the audit. We will provide you a detailed list before starting the audit.
Fee for Tax Audit
The professional fee starts from Rs. 10000.
Timeline for Tax Audit
There is no fixed time for a tax audit. But it needs to be done before the due date. The actual time taken will depend on the size of business, number of transactions, and the complexities of those transactions.
Why Choose PocketLawyer for Tax Audit?
- Experienced and qualified professionals with 12 years of average experience.
- Access to highly qualified professionals anytime, anywhere in India.
- Fixed price. No hidden fees or long-term commitment.
- 100% satisfaction guaranteed. Our money back guarantee makes sure that you get complete satisfaction, every time you choose our services.
What is more?
- Our dedicated support team is always there to help you with any query or issue that you may have.
- Choosing PocketLawyer means the best service, at the best price
Most importantly, we deliver what we promise. On time, every time.