The Income Tax Department, at the last possible minute, extended the submission period for the Tax Audit Report for Assessment Year 2022/23. As a result, many companies, stakeholders and professionals hailed the decision of Tax Audit Report for AY 2022-23 due date extended. Let us understand the latest updates on the Tax Audit Report Due Date Extension.
What is a Tax Audit Report?
A tax audit is an examination of a taxpayer’s financial records by a chartered accountant to fulfill the requirements of Section 44AB. The results of the tax audit must be documented by the chartered accountant’s observations, conclusions, and recommendations in an audit report.
Understand it in detail at: Who is required to have Tax Audit as per Income Tax Act, 1961?
Purpose of Tax Audit Report
Auditing taxes can help you figure out if you’re meeting the criteria for Forms 3CA, 3CB, and 3CD. A competent audit for tax reasons would guarantee that the books of account and other records are properly maintained, that they accurately represent the taxpayer’s income, and that his claims for deduction are right, in addition to the reporting requirements of Forms Nos. 3CA/3CB and 3CD. A thorough audit like this would also be useful for preventing fraud.
Assessing Officers’ time may be greatly reduced spent on basic verifications including ensuring exact totals and determining if purchases and transactions are properly vouched for, which in turn can improve the efficiency with which tax laws are administered. The time saved by Assessing Officers might be put to better use in other, more crucial, areas of a case, such as the investigation of it.
Latest Update Tax Audit Report Due Date Extended for AY 2022-23
The Income Tax Department, at the last possible minute, extended the deadline for submitting the Tax Audit Report for Fiscal Year 2022/23 from September 30, 2022, to October 7, 2022. The primary justification for the additional time was that the Income Tax Portal was inaccessible. There have been reports of users saying it takes them many hours to upload just one audit report. Therefore, For the Assessment Year 2022-23, CBDT has extended the deadline for filing a number of audit reports required under the Income-tax Act, 1961. The notification was given through a tweet. The notification was also launched on the income tax’s official web portal and is available at: Circular.
What is the penalty for not filing a Tax Audit Report on the Due Date?
A penalty may be imposed under Section 271B of the Income Tax Act if a taxpayer is obligated to seek a tax audit but fails to do so. 0.5% of the turnover or gross revenues, up to a maximum of Rs.1,50,000, is the penalty for failing to complete a tax audit.
The tax portal’s malfunctioning has caused multiple problems to the taxpayers. However, the extension of filing a Tax Audit Report has come as relief and you should not miss this opportunity. You can easily file your tax audit report through the assistance of our experts.
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