Income Tax Audit u/s 44AB: Know Meaning, Turnover Limit and Due Date

Income Tax Audit u/s 44AB: Know Meaning, Turnover Limit and Due Date

There are some specified individuals and businesses who are required to get their accounts audited under the income tax law. During the tax audit, the auditor reviews and analyses the financial statement of a business or a professional to ensure that the financial details, such as income, expenses, and deductions, are reported correctly in the income tax return (ITR).

Section 44AB of the Income Tax Act outlines the provisions about the taxpayers who are required to get their accounts audited by a Chartered Accountant. If the turnover of a company or individual crosses the specified threshold limit, then a tax audit is mandatory. This ensures that the books of accounts is accurate. If the auditor observes a mismatch in the books of account, then they report it. In short, the main objective of a tax audit is to ensure that the books of account and other records are properly maintained. There are some specified taxpayers who are mandatory to get audited.