Tax Audit

Tax Audit is required u/s 44AB of the income tax act, 1961. This section mandates that every person whose business turnover exceeds INR 1 crore and every person working in a professional with gross receipts exceeding INR 25 lacs must have their accounts audited by an independent chartered accountant. The Tax audit report is to be obtained by September 30th after the end of the previous fiscal year. Noncompliance attracts a penalty of 0.5% of turnover or INR 1 Lacs whichever is lower.