➡️ No audit needed if you follow all presumptive rules correctly. If you opt-out or exceed limits, audit applies.

➡️ Heavy penalty of ₹1.5 lakh or 0.5% of turnover may apply. We also assist with delay justification filings.

➡️ Not unless they also run a business or own a professional practice.

➡️ These are prescribed audit forms that CA files under the Income Tax Act with complete financial details.

➡️ GST Audit is separate but required if annual turnover crosses ₹5 Cr. We offer both services together.

➡️ Fastzeal helps set up compliant bookkeeping, timely filings, and advisory to reduce audit risks.➡️ Fastzeal helps set up compliant bookkeeping, timely filings, and advisory to reduce audit risks.

While auditing if you do not have any receipt, the auditor may accept any other paper works and in case you fail to present the same, the auditor will not accept the entry in the books of accounts.

Section 44AB gives the provisions relating to the class of taxpayers like businesses or professions or self employed persons 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 fulfilment of other requirements of the Income-tax Law. The Audit conducted by the chartered accountant of the taxpayer accounts in pursuance of the requirement of section 44AB is called a tax audit.

Types of accounts that come under tax audit:

1. Individual/Proprietorship

2. Hindu Undivided Family

3. Company

4. Partnership Firm

5. Association of Person

6. Local Authority

An audit, which is required by the statute (law), is known as a statutory audit. A tax Audit is a compulsory audit under Income Tax Act 1961 if the turnover of the assesses reaches the specified limit. Statutory Audit is performed by external auditors, whereas tax audit is conducted by a practising Chartered Accountant.

Objective of a tax audit

1. It ensures that books of accounts are maintained properly and correctly and certified by the tax auditor.

2. Once methodical verification of books of accounts is done, it is necessary to report observations or discrepancies observed by the tax auditor.

3. It can prove financially beneficial for a business.

4. An audit gives credibility to a piece of information published for employees, customers, suppliers, investors, and tax authorities.

The lists of activities that will result in a healthy tax audit:

1. Income Tax Act has made it mandatory to maintain books of accounts

2. It is necessary to compute profit or gain under Chapter IV

3. Income is taxable or loss allowable.

4. In tax return file mention show taxable income and allowable loss

The tax auditor presents his report in the specified form, which could be either Form 3CA or Form 3CB, where:

1. Form No. 3CA is presented when a person involved in business or profession is already mandated to get his accounts audited under any other law

2. Form No. 3CB is presented when a person is involved in business or profession does not need to get his accounts audited under any other law.