Tax Audit utility for filing Tax Audit Reports for FY 2020-21 enabled by CBDT

Tax Audit utility for filing Tax Audit Reports for FY 2020-21 enabled by CBDT The Central Board of Direct Taxes [CBDT] has finally enabled Income Tax Audit utility for filing Tax Audit Reports for Financial Year 2020-21 or Assessment Year 2021-22.

Applicability of Tax Audit

A person is required to go for Tax Audit if his total sales, turnover, or gross receipts (as the case may be) in business for the year exceed or exceed Rs. 1 crore, he is considered to be in business. This provision does not apply to a person who chooses the presumptive taxation scheme under Section 44AD and has total sales or turnover of less than Rs. 2 crores. A person carrying on a profession is required to get his accounts Audited if his gross receipts in profession for the year exceed Rs. 50 lakhs.

Mechanism of Tax Audit

• The auditor must provide the audit report in the specified audit form, along with detailed information.
• The person conducting a tax audit must report the findings in a report using the income tax department's prescribed 'Audit Forms.'
• Forms 3CA and 3CB are prescribed in Section 44AB. In addition to these two forms, the auditor must provide a form 3CD.
• You May Also Refer: Difference between form 3CA & 3CB – Income Tax Audit Form

Due date of Filing Tax Audit Report

• Due date of Filing Tax Audit Report is 30th September of the relevant assessment year unless otherwise extended.
• However, the due date for furnishing the audit report for AY 2021-22 has been extended to 15th Jan 2022.

Late Fees

• The Assessing Officer may impose a penalty u/s 271B if the taxpayer doesn’t get his accounts audited or file the audit report.
• A minimum penalty can be 0.5% of the total sales, turnover or gross receipts, which can go up to Rs. 1,50,000.
• However, if the taxpayer gives reasonable cause for non-compliance, no penalty will be imposed.