Can Tax Audit Report be filed after the Due Date?

What is Tax Audit?

Tax audit is the verification of the books of accounts of a taxpayer, in order to validate the income tax computation and compliance with the laws of Income Tax Act, 1961. Auditing of books of accounts must be carried out by a certified Chartered Accountant. Here we will tell you about the minute details about Tax Audit and the consequences of not filing the Tax Audit Report by the Due Date.

Who needs a Tax Audit Report?

The Tax Audit is done under the Section 44AB of Income Tax Act, 1961, here are the couple of taxpayers who are supposed to get their books of accounts audited and file a tax audit report: -

Businesses

For a business, the tax audit would be required if the annual turnover or gross receipts of the business is more than Rs. 1 Crore in any previous year. Under the Income Tax Act, “Business” simply means any economic activity carried out for earning profits. As per Section 2(3) business is “any trade, commerce, manufacturing activity or any adventure or concern in the nature of trade, commerce and manufacture”.

Profession

In case of a profession or professional, tax audit is required if the gross receipts of profession exceeds Rs. 50 Lakhs in any of the previous year. A profession or professional could be any of the following as per Rule 6F of the Income Tax Rules, 1962:

Architect
Accountant
Authorized representative
Engineer
Film Artist – Actor, Cameraman, Director, Music Director, Editor, etc.
Interior Decorator
Legal Professional – Advocate or Lawyert
Medical Professional – Doctor, Physiotherapist, etc.,
Technical Consultant

Presumptive Taxation Scheme

If a person is enrolled under the presumptive taxation scheme, as per section 44AD and total sales or turnover is more than Rs. 2 Crores, then tax audit is required. Moreover, any person enrolled under the presumptive taxation scheme who claims that the profits of the business are lower than the profits calculated in accordance with the presumptive taxation scheme is supposed to obtain a tax audit report.

Due Date for Filing Tax Audit Report

The due date for completing and filing tax audit report under section 44AB of Income Tax Act, 1961 is 30th September of the relevant assessment year. Therefore, if a taxpayer gets tax audit, then he/ she is supposed to file income tax return on or before 30th September along with the tax audit report. In case the taxpayer is also liable for transfer pricing audit, then the due date for filing tax audit report is 30th November of the relevant assessment year.

Consequences of not filing Tax Audit Report by the Due Date