Should you be a taxpayer and the total revenues from any line of work exceed the limitations set by the Income Tax Act, you have to have an unbiased certified accountant evaluate your books of accounts. This is true not just in the line of work but also independently. This tax audit must be conducted according to Section 44AB of the Income Tax Act, 1961; the audit report must be submitted by the 30th of September of the relevant assessment year.
The main objective of a tax audit is to determine if your company follows any other pertinent legislation in addition to the Income Tax Rules and Regulations. By means of a tax audit, one may guarantee that every tax legislation is applied precisely and carefully.
A tax Audit Services in Delhi is a service that provides an assessment of your company's financial records, meant to guarantee that Income Tax Act compliance is being followed. We are fully ready to follow this process in a fast and competent manner, therefore guaranteeing that all statutory criteria are fulfilled. The personnel of Legal N Tax are exactly qualified to handle this procedure.
Who Needs to Finish a Tax Audit?
Section 44AB of the Income Tax Act requires some individuals or companies to have a Chartered Accountant examine their books of accounts. People as well as businesses find this requirement important.
1. Business: Regarding businesses, should the gross income of the specific firm surpass ₹1 crore in any one fiscal year, a tax audit has to be carried out. On the other hand, the threshold limit increases to ₹ five crore if cash collections and payments do not exceed 5% of the total revenues and payments made during the year. Starting with the Assessment Year 2021-22, this new restriction will be immediately applicable.
2. Profession: A professional has to undergo a tax audit if their gross income for a certain financial year comes out to be ₹50 lakhs. This also extends to businesses seen as professions.
Furthermore, depending on the particular situation, certain companies or people could have to go through a tax audit even if their turnover is less than the previously mentioned criteria.
Taxpayers falling under these conditions are required to have their books checked and turn in the report by the designated due date.
How May Auditing Your Taxes Benefit Your Business?
Apart from ensuring your business follows the rules regulating taxes, a tax audit has other benefits for your business. This promotes:
1. Government Acceptance: Since government bodies usually see audited financial statements as being honest and fair, they are consequently rather important for the operations of your business, including the procurement of loans, licenses, and permits.
2. Building of Trust: By means of a tax audit, your company enhances its profile among important actors such as consumers, investors, suppliers, employees, tax authorities, and thus develops trust and confidence. And Legal N Tax is a connected bridge between tax authorities and your company as the Consultant for the tax Audit Service in Delhi.
3. Prevention of Fraud: The detailed audit helps identify disparities in financial records, therefore lowering the likelihood of dishonest behavior in your company. This is a critical phase in the prevention of fraud.
4. Professional Advice: The audit findings will direct our tax audit professionals at Legal N Tax to provide smart recommendations based on experience that will enable you to find ways your business can strengthen its general operations and financial policies. The basis of these suggestions will be audit results.
Should you neglect to turn in your tax audit report within the designated period, you run the risk of paying fines for non-compliance.
Ignoring the deadline for turning in the tax audit report might lead to a penalty, possibly including the following:
- 0.5% of the company's whole gross income, or sales volume.
- One fine is permanently ₹ 1,50,000.
Should you decide to use the Legal N Tax, you will be free from these fines. We ensure your business won't pay any unnecessary fines or penalties for late filings as we handle all compliance criteria.
Why Should You Choose Legal N Tax If You Need a Tax Audit?
Saying that we at Legal N Tax are really happy with our knowledge and experience in tax audits would be overstating. We have had the opportunity over the years to collaborate with a broad range of clients, ranging from well-known companies to individual taxpayers. Our tax Audit Services in Delhi guarantee that your company will continue to comply with the regulatory requirements as they are created to meet the most severe criteria.
Let us Clarify our Uniqueness:
1. Experience: On the basis of our extensive knowledge, our staff has a fantastic track record of successfully executing tax audits for firms of varying sizes. Whether you are the sole proprietor of a very successful company or the manager of a very successful firm, we provide the tools necessary to effectively meet your requirements.
2. Methodological Approach: Our strict and disciplined audits are meant to minimize the possibility of any unanticipated results. We can ensure that the audit works without a hitch right from the start to the very end by carefully planning it and fixing any possible problems before they even show themselves.
3. Comprehensive Audits: Our experienced tax audit team will identify areas of inefficiency or compliance issues, thereby providing all the guidance you want for your next company expansion. One also finds whole audits easily available.
4. Client Centric Focus: Team members aggressively defend your interests in line with a client-centric focus.
5. Alignment with Global Standards: The auditing policies that are suggested by the Institute of Chartered Accountants of India (ICAI) are the approaches that we take when conducting audits. These standards provide reliability and quality in accordance with the standards that are used for audits across the world.
6. Effective and interrupt-free audits: Our goal is to deliver them on schedule while causing as little disruption as possible to the operations of your company. Because of our expertise, we are able to do the audit in a short amount of time while still maintaining the highest possible quality standards.
7. Technology of Highest Order: We use the most modern instruments at hand to support our audit methods. This guarantees accurate and successful audits every time we do.
8. Strategic Business Advice: Our auditing approach provides smart analysis that will help you to improve the operation of your company and reduce risks, so transcending only assuring compliance.
The best choice if you are looking for a reliable Consultant for tax Audit Service in Delhi is Legal N Tax. Using a devoted workforce, a great degree of expertise, and a devotion to quality can help your business to ensure both expanding its potential and ongoing compliance with rules. As soon as you need a tax audit discussed, kindly contact us at mail@legalntaxindia.com to go over your needs and various options for help.
