Need For an Income Tax Audit

To fully comprehend the income tax audits, it is first important to understand the purpose of tax audits or why it is conducted. Income Tax Act, 1961 requires, Persons (individuals, firms or companies) whose turnover during the financial year exceeds limits specified below to get their books of accounts audited by a independent Practicing Chartered Accountant or a Charted accountancy firm.

For persons carrying on business Rs. 1 Crore or 10 Million ( For businesses declaring income under section 44AD the limit is Rs. 2 Cr)

For persons carrying on profession Rs. 50 Lakhs 0.5 Million

Asset Due diligence

All these businesses are required to conduct an income ta audit to ensure the compliance with income tax laws and regulations. With our best Income Tax Audit Services in Bangalore we aim to achieve the following mentioned main objectives of a tax audit:

Ensures that all the financial records and books of accounts are maintained and certified by a tax auditor.

The audit reported generated at the end confirms the compliance with various provisions of income tax law.

Make Sure that your business records reflect the actual income for the deductions to be made accurately.

Individuals and Businesses Obligated to Undergo Tax Audits

The income tax departmet in India has made it mandatory for the individuals and businesses with sales, turnover or gross receipts of a business exceed Rs 1 crore in the financial year. For the professionals, receipts over Rs. 50 lakhs also make you eligible for you a tax audit.

People from several professions such as engineers, actors, medical professionals, interior decorators, architects and legal professionals. Our Income Tax Audit Services in Bangalore are perfectly capable of catering to the audit requirements of different professions You can refer to the rule of 6F of the income tax rules, 1962 to get an exhaustive list of the professions. Several categories of circumstances where tax audits are required is elaborated in the table below.

Eligible Categories

Different Circumstances

Threshold

Business

Carrying on business

– Total sales, turnover or gross receipts exceed Rs.1 crore in the FY – Cash transactions are up to 5% of total gross receipts and payments, the threshold limit of turnover for tax audit is increased to Rs.10 crores

Carrying on business eligible for presumptive taxation under Section 44AE, 44BB or 44BBB

Claims profits or gains lower than the prescribed limit under the presumptive taxation scheme

Carrying on business eligible for presumptive taxation under Section 44AD

Declares taxable income below the limits prescribed under the presumptive tax scheme and has income exceeding the basic threshold limit.

Professions

Carrying on profession

Total gross receipts exceed Rs 50 lakh in the FY

Carrying on the profession eligible for presumptive taxation under Section 44ADA

– Income exceeds the maximum amount not chargeable to income tax– Mentions profits or gains lower than the prescribed limit under the presumptive taxation scheme

Business Loss

Business loss from carrying on of business and not opting for presumptive taxation scheme

Total sales, turnover or gross receipts exceed Rs 1 crore

Taxpayer’s total income exceeds basic threshold limit but has incurred a loss from carrying on a business (not opting for presumptive taxation scheme)

Loss from business when sales, turnover or gross receipts exceed 1 crore, the taxpayer is subject to tax audit under 44AB

Connect With the Best Income Tax Audit Services in Bangalore

Income tax audits plays a crucial role for the smooth functioning of any business. It is important to hire the top income tax audit services in Bangalore who can accurately and precisely analyse your account books and financial records. At Prakasha & Co we offer range of assurance and business services to a diverse client base ranging from small businesses & start-ups to large groups and development sector. Our team of audit experts make sure that all your reporting requirements are met at the due time. With Prakasha & Co you can enjoy best tax planning advices that’ll help your company run efficiently and cost effectively.

We are backed up by a highly qualified and professional staff who utilizes time tested methods towards providing income tax audit services in Bangalore. We put emphasis on the compliance with the Indian GAAP, US GAAP and IFRS for Indian Companies. We are preferred in Bangalore for our adherence to Auditing standards issued by ICAI in carrying out our audit and assurance services. The list of benefits you and your business can enjoy after choosing our unmatched tax audit services in Bangalore are mentioned as follows:

Backed up by a team of Charted Accountants having more than 10 years of experience.

Commitment to understanding the unique needs of each client.

A vast experience in catering diverse business fields from pharmaceutical business to IT and Travel & Tour Operations, etc.

Experts with thorough expertise and experience in income tax matters.

Reach the Best Income Tax Audit Services in Bangalore At!

Name: Prakasha & Co Address: 188/1, Sahakarnagar, Bangalore-92

Phone: +91-7019 827 351

Email: Prakashaandco@gmail.com