Tax Audit
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Tax Audit
Tax audit is an important compliance process that helps eligible businesses and professionals verify their financial records and meet applicable income tax requirements. At Delhi Legal Beagle, we understand the importance of maintaining accurate accounts, identifying reporting discrepancies, and preparing the necessary documentation for tax compliance. A properly conducted tax audit can help improve financial transparency and support adherence to applicable provisions of the Income-tax Act, 1961.
Our tax audit support focuses on reviewing books of accounts, examining financial transactions, reconciling income and expenditure, and organising information required for audit reporting. We assist businesses, professionals, and other eligible taxpayers in understanding their audit obligations, addressing discrepancies, and preparing relevant financial information in accordance with applicable laws and prescribed procedures.
Our Tax Audit Services
Tax Audit Applicability Assessment
Reviewing turnover, gross receipts, business activities, and other relevant factors to assess whether a taxpayer may be required to undergo a tax audit under applicable provisions.
Books of Accounts Verification
Reviewing ledgers, journals, bank statements, invoices, expense records, and other supporting documents to identify inconsistencies and improve the reliability of financial records.
Tax Audit Report Preparation
Assistance with compiling financial information and supporting schedules required for tax audit reporting, including the applicable audit forms, subject to statutory requirements.
Business and Professional Tax Audits
Support for eligible businesses and professionals in organising accounting records and preparing information required for tax audit compliance based on the nature of their activities.
Income and Expense Verification
Reviewing income records, business expenses, deductions, and supporting evidence to identify discrepancies and assess their treatment under applicable tax provisions.
Frequently Asked Questions
A tax audit is an examination of specified books of accounts and supporting records to verify compliance with applicable income tax provisions. In India, tax audit requirements are principally governed by Section 44AB of the Income-tax Act, 1961, subject to the relevant conditions and exceptions.
Tax audit applicability depends on factors such as business turnover, professional gross receipts, cash transaction levels, and the provisions applicable to the taxpayer. Specific thresholds and exceptions must be assessed based on the relevant financial year and circumstances.
Common documents include books of accounts, bank statements, sales and purchase invoices, expense vouchers, financial statements, GST returns, fixed asset details, loan records, and other supporting schedules relevant to the taxpayer’s activities.
Failure to comply with applicable tax audit requirements may attract consequences under income tax law, including potential penalties under Section 271B, subject to statutory provisions and reasonable-cause exceptions under Section 273B where applicable.
No. A tax audit examines compliance with specified income tax requirements, while a statutory audit is required under other applicable legislation, such as the Companies Act, 2013, for entities covered by those provisions. A business may be subject to one or both depending on its legal structure and circumstances.