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A Full Guide to Scrutiny Risk in I-T Audit Reports in India

Scrutiny Risk Income Tax Audit

With the approaching due date for Income Tax Audit Report filing, taxpayers and their hired professionals are excessively occupied with the task of completing the Income Tax Reports. While some are busy bundling the documents others are struggling to accurately file the compliance.

Tax Audit Reports are submitted by taxpayers whose annual turnover is more than 1 Crore this limit is increased to Rs. 10 Crore if the cash transaction is less than 5% and for sec 44AD/44ADA taxation the turnover value is Rs. 2 Crore. For professionals the amount is Rs. 50 Lakhs.

In budget 2023 threshold limit increased u/s 44AD to Rs. 3 crores and the limit under section 44ADA increased to Rs. 75 lakhs. This limit will be applicable only when 95% receipt in digital mode of total receipt of the business or profession.

Negligence while filing the reports will make taxpayers prone to penalties or taxman’s investigation.

Below are the key pointers helpful to judge Scrutiny Risk in Tax Audit Reports.

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