When is the last date to submit an income tax audit report? The last date for income tax audit is September 30, 2023 for FY 2022-23 (AY 2023-24). And the last date for ITR filing along with audit report is October 31, 2023
Certain taxpayers have to mandatorily conduct an income tax audit of their books of accounts as per the Income-tax Act, 1961. An income tax audit is a thorough inspection of the books of accounts of a business entity or professional individual.“The government's mandate for income tax audits among businessmen and professionals crossing specific income thresholds demonstrates a commitment to financial transparency and accountability. This measure serves multifaceted purposes. Firstly, it ensures the accuracy of financial records and ITRs, aligning reported income and expenses with actual financial activities. Secondly, such audits act as a deterrent against tax evasion, discouraging entities from misrepresenting income or inflating expenses to lower tax obligations,” says Chartered Accountant Sandeep Agrawal, Director, TeamLease Regtech, a regulatory compliance technology company.
Read below to know when is the due date to submit a tax audit report and ITR filing by such taxpayers and who has to be hired to conduct an income tax audit as per income tax rules.
What is the last date to submit a tax audit report?
“A taxpayer who is required to obtain a tax audit report should get the book of accounts audited and obtain the audit report on or before 30th September of the relevant assessment year,” said Vijay Bharech, director, Deloitte Haskins & Sells LLP, a business and tax consultancy firm.For example, if an individual is required to get a tax audit done due to business or professional income in FY 2022-23 above the audit requirement threshold, he/she should get the audit done by September 30, 2023 and the same report should be uploaded in the ITR portal by the same date.
Deadline for ITR filing with audit report
It is important to understand that different categories of taxpayers have different due dates to file ITR. “The due date for filing the ITR for taxpayers who are required to submit an audit report is October 31st of the assessment year. This due date is applicable to taxpayers who are required to get their accounts audited as per Section 44AB,” said Aditya Chopra, Managing Partner, Victoriam Legalis - Advocates & Solicitors, a Mumbai based law firm.
For example: suppose an individual has business or professional income above the specified threshold which mandates an income tax audit in FY 2022-23 (AY 2023-24). Then such an individual must get their books of accounts audited by September 30, 2023. And file his ITR along with the audit report by October 31, 2023.
So, in essence, taxpayers with business and professional incomes are required to remember two important dates in the context of ITR filing. Firstly, the tax audit report due date under section 44AB which is September 30. Secondly, the ITR filing due date along with this tax audit report, which is October 31.
Who should be hired to conduct such a tax audit?
It is important to note that a taxpayer who is mandatorily required to conduct an income tax audit is required to hire two different chartered accountants. One chartered accountant is required for managing and handling books of accounts, day-to-day operations, etc. Another chartered accountant is required to conduct the inspection of books of accounts for the purpose of the tax audit. A chartered accountant conducting a tax audit cannot manage day to day operations of the same taxpayer.“The tax audit report is required to be e-filed by the chartered accountant. After filing of the tax audit report by the chartered accountant, the taxpayer has to approve the report from his e-fling account with the Income-tax Department,” said Bharech.
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This story originally appeared on: India Times - Author:Faqs of Insurances
