TAR Deadline for FY 2024-25 Nears: Know Turnover Limits, Due Dates, and Penalties

TAR Deadline for FY 2024-25 Nears: Know Turnover Limits, Due Dates, and Penalties

The general meaning of ‘audit’ is to check, inspect, review, etc. In financial terms, a tax audit is an analysis or review of the books of accounts of any business or profession carried out by taxpayers. Taxpayers are required to get accounts of their business/profession audited with the Income Tax Department, under Section 44AB of the Income Tax Act. This is done by a chartered accountant (CA).

When accounts of such taxpayers are audited by a chartered accountant seeking the requirements of Section 44AB under the Income Tax Law, it is called a tax audit. In such a case, the chartered accountant performing the tax audit is required to give an audit report including his findings, observations, etc. This report needs to be given by CA in Form Nos. 3CA/3CB and ​3CD. ​

The types of audits vary according to different types of laws, like a company audit being required for company law, a cost audit being required for cost accounting law, etc.