Frequently asked questions
What is the penalty for not getting the accounts audited as required by section 44AB?
According to section 271B, if any person who is required to comply with section 44AB fails to get his accounts audited in respect of any year or years as required under section 44AB, the Assessing Officer may impose a penalty. The penalty shall be lower of the following amounts:
(a) 0.5% of the total sales, turnover or gross receipts, as the case may be, in business, or of the gross receipts in profession, in such year or years.
(b) Rs. 1,50,000.
However, according to section 273B, no penalty shall be imposed if reasonable cause for such failure is proved.
As per section 44AB, who is compulsorily required to get his accounts audited, i.e., who is covered by tax audit?
1. A person carrying on business, if his total sales, turnover or gross receipts in business for the year exceed or exceeds Rs. 1 crore. This provision is not applicable to the person, who opts for presumptive taxation scheme under section 44AD and his total sales or turnover does not excceeds Rs. 2 crores.
2. A person carrying on profession, if his gross receipts in profession for the year exceed Rs. 50 lakhs.
3. A person who is eligible to opt for the presumptive taxation scheme of section 44AD but claims the profits or gains for such business to be lower than the profits and gains computed as per the presumptive taxation scheme of section 44AD and his income exceeds the amount which is not chargeable to tax.
What is the due date of filing return for taxpayers liable to audit u/s 44AB?
The due date of return filing for taxpayers liable to Tax audit is:
1. 30 September of the relevant assessment year.
2. If a business has international transaction then due date is 30 November.
What is tax audit?
Section 44AB gives the provisions relating to the class of taxpayers who are required to get their accounts audited from a chartered accountant. The audit under section 44AB aims to ascertain the compliance of various provisions of the Income-tax Law and the fulfillment of other requirements of the Income-tax Law. The audit conducted by the chartered accountant of the accounts of the taxpayer in pursuance of the requirement of section 44AB is called tax audit.
Can I file a revised return to correct mistakes made that I make in the original return?
It is possible to file a revised return if the original return has been filed before the due date and the Department has not completed the assessment. However, a revision is not possible for a return filed after the due date.
IT Return can be revised within a period of one year from the end of the relevant assessment year or before completion of the assessment whichever is earlier.
What is ITR V (Acknowledgement) Verification?
Once Income Tax Returns are filed, you need to verify it. It is not treated as valid until it is verified by the taxpayer. There are different ways of verification such as:
1. It can be printed, signed and sent to Centralised Processing Centre, Bengaluru.
2. It can be e-verified using an electronic verification code (EVC), Aadhar, ATMS, netbanking or bank account based validation.
ITR Filing-Company/LLP/Firms/Individual liable for audit u/s 44AB- Rs.2950
Business or professional maintaining regular books of accounts are required to file their Income Tax Returns along with Tax Audit u/s 44AB if their gross receipts or turnover exceeds Rs 1 crore or 50 lakhs respectively on or before 30 September of the relevant Assessment Year. . Also if they have opted for Presumptive Taxation scheme and they exceed the turnover limit of Rs 2 core (Business) or 50 lakhs (Profession). Taxgoal assists businesses and professions to meet their tax compliances effectively and efficiently within the prescribed timelines.
Opt this plan to get income tax return filed for your Company/LLP/Partnership Firms/Proprietorship Firm (liable for audit u/s 44AB)
Our in house experts will assist with all your queries regarding Income Tax filing and get your return filed in a hastle free manner.
- Assistance on income tax queries like issues relating to deduction, tax saving etc
- Filing of Income Tax return
- Assist in payment of challan for discharging tax liability
- Review of Computation of tax and file return once approved by you
- Individuals or Sole Proprietors liable for audit u/s 44AB
- Company/LLP/Partnership Firms,trust etc
- Any other person liable for Tax Audit u/s 4AB
- Details such as PAN card no of the firm.
- Bank details such as account no, IFSC code
- Bank account statement
- Audited Books of accounts i.e. (Profit & loss A/c, Balance Sheet, Trial Balance)
- Audit Reports
- Details of any Advance Tax deposited
- Any other detail as required
| Plan Charges | 2500 |
| Goods & Services Tax (GST) | 450 |
| Total Cost | 2950 |
* Estimate Time for Service Completion
2-3 Days
What is the penalty for not getting the accounts audited as required by section 44AB?
According to section 271B, if any person who is required to comply with section 44AB fails to get his accounts audited in respect of any year or years as required under section 44AB, the Assessing Officer may impose a penalty. The penalty shall be lower of the following amounts:
(a) 0.5% of the total sales, turnover or gross receipts, as the case may be, in business, or of the gross receipts in profession, in such year or years.
(b) Rs. 1,50,000.
However, according to section 273B, no penalty shall be imposed if reasonable cause for such failure is proved.
As per section 44AB, who is compulsorily required to get his accounts audited, i.e., who is covered by tax audit?
1. A person carrying on business, if his total sales, turnover or gross receipts in business for the year exceed or exceeds Rs. 1 crore. This provision is not applicable to the person, who opts for presumptive taxation scheme under section 44AD and his total sales or turnover does not excceeds Rs. 2 crores.
2. A person carrying on profession, if his gross receipts in profession for the year exceed Rs. 50 lakhs.
3. A person who is eligible to opt for the presumptive taxation scheme of section 44AD but claims the profits or gains for such business to be lower than the profits and gains computed as per the presumptive taxation scheme of section 44AD and his income exceeds the amount which is not chargeable to tax.
What is the due date of filing return for taxpayers liable to audit u/s 44AB?
The due date of return filing for taxpayers liable to Tax audit is:
1. 30 September of the relevant assessment year.
2. If a business has international transaction then due date is 30 November.
What is tax audit?
Section 44AB gives the provisions relating to the class of taxpayers who are required to get their accounts audited from a chartered accountant. The audit under section 44AB aims to ascertain the compliance of various provisions of the Income-tax Law and the fulfillment of other requirements of the Income-tax Law. The audit conducted by the chartered accountant of the accounts of the taxpayer in pursuance of the requirement of section 44AB is called tax audit.
Can I file a revised return to correct mistakes made that I make in the original return?
It is possible to file a revised return if the original return has been filed before the due date and the Department has not completed the assessment. However, a revision is not possible for a return filed after the due date.
IT Return can be revised within a period of one year from the end of the relevant assessment year or before completion of the assessment whichever is earlier.
What is ITR V (Acknowledgement) Verification?
Once Income Tax Returns are filed, you need to verify it. It is not treated as valid until it is verified by the taxpayer. There are different ways of verification such as:
1. It can be printed, signed and sent to Centralised Processing Centre, Bengaluru.
2. It can be e-verified using an electronic verification code (EVC), Aadhar, ATMS, netbanking or bank account based validation.