A tax audit is when the IRS examines your tax return information to ensure all the reported data is correct.
The term ‘audit’ refers to a check, review, verification or inspection of a record, transaction, account etc. A tax audit is the process of verification and inspection of the accounts of a taxpayer to confirm their adherence to the provisions of the Income Tax law.Section 44AB of the Income Tax Act, 1961 deals with the Audit of the Accounts of a certain category of persons carrying on a business or engaged in a profession.
(1) It can highlight any financial discrepancies in your cash flow.
(2) It can help you and your organisation discover better ways to be tax-compliant.
(3) It can prove an entity’s transparency, truthfulness, and financial credibility.
(4) It can thoroughly test the efficiency and efficacy of an entity’s current financial management system.
(1) Selection of a Tax Auditor.
(2) Filing the Form and Submission of Necessary Documents to the Auditor.
(3) Verification of Documents by the Auditor.
(4) Preparation of Audit Report
(1) Name of the assessee
(2) Address proof of the assessee.
(3) PAN/Aadhar Card of the assessee.
(4) GST Registration Number or any other document which proves the payment of indirect taxes.
(5) Status of the Assessee as a person under section 2 ( 31 ) of the Income-tax act 1961
(1) What is tax audit
(2) What happens if i get audited and don't have receipts?
(3) What is an example of tax evasion?
(4) What is the objectives of a tax audit?
(5) What are the lists of activities that will result in a healthy tax audit?