Tax Audit

Tax Audit

The implementation of a new provision ’44AB’ in the Finance Act of 1984 illustrates the current tax audit provisions that have been in place since the appraisal year 1985-86. The primary reason behind its implementation is to tackle problems such as tax avoidance and tax evasion. Throughout the form of the tax audit, the tax auditors provide a view on the responsibility and validity of some factual information provided to the indirect tax authorities by the assessor for further tax evaluation litigation. The tax audit is made compulsory under the Income Tax Act of India which is conducted in case of turnover of more than 25,00,000 for professionals and 2,00,00,000 for persons. The appointed Chartered Accounted conducts tax audit of the assesses. The Chartered Accounted provides the tax audit report to the person in form 3CD specified under the Income Tax Act. During filing for the income tax return, relevant facts and data from report is mandatory to include in income tax return.