📑 Tax Audit — Overview

1️⃣ Meaning of Tax Audit

A Tax Audit is an examination of a taxpayer’s books of accounts to ensure:

• Compliance with the Income Tax Act, 1961

• Correctness of income reported, deductions claimed, and taxes paid

2️⃣ Applicability (Section 44AB)

Tax Audit is mandatory under Section 44AB for the following categories:

3️⃣ Due Date for Tax Audit

The audit report must be submitted on or before 30th September of the relevant Assessment Year (unless extended by CBDT).

4️⃣ Forms Required

5️⃣ Late Fees & Penalty (Section 271B)

If a taxpayer fails to get the accounts audited or fails to furnish the audit report:

• Penalty: Lower of:

  • 0.5% of total sales/turnover/gross receipts, or

  • ₹1,50,000

6️⃣ Exceptions

Penalty may not be levied if the taxpayer proves there was a reasonable cause for the failure, such as:

• Natural calamities

• Death of the accountant

• Other valid reasons