Due Date For Tax Audit For AY 2016-17 And Things To Keep In Mind
Tax Audit Due Date For AY 2016-17
As most of us know, a tax audit is a review or inspection of individual or organisation’s tax return. It is a compulsory process as per the Income Tax Act 1961.
Tax audit in India are provisioned under section 44AB of the Income Tax Act 1961. Any individual falling under this has to get a review his book of accounts by an authorized chartered accountant (CA).CA has to submit a report by the due date for the filing of income return.
In our last article on tax audit, we stated that due date for tax audit filing is 30th September of the assessment year 2016-17. The Central Board of Direct Taxes (CBDT) is a government authority functioning under the Central Board of Revenue Act, 1963. CBDT has extended tax review due date from 30th September to 17th October 2016.
In an earlier notion, CBDT had extended ITR filing date from 31st July to 5th Aug. J&K had an exceptional date of 30 Sep for Non-Tax Audit Cases.
Circular F.No.225/195/2016-ITA-II issued on 9th September 2016 stated the extension date. It has also extended the Tax Audit Report filing as well as ITR filing to 17th Oct 2016.It is applicable to all tax payers who are required to submit the tax return for Assessment Year 2016-17 by 30 September, as per section 44AB.
Section 44AB also states that tax review must be done by an accountant on the specified due date .The inspection process must be in a prescribed manner by CBDT. This specified due date is as per sub-section (1) of section 139 of Income-tax Act.
On 14th Sep 2016, further clarifications were made via F.No. 225/195/2016/ITA.II. It stated the extension applicability to all assessee required to file their return of income by 30th September 2016 as per clause (a) of sub-section (1) of section 139 of Income-tax Act, 1961.
There are some points to be taken care for tax audit –
- One should make sure that tax return is completed in full. Any missing information can lead the government to take a closer look at your taxes.
- Be prepared and keep all your books of accounts and other records ready and in order in advance.
- Seek advice from tax filing experts for accuracy and hassle free service.
Section 271B states that all individuals eligible under section 44AB are levied a penalty if they fail to get their budget books reviewed on or before the tax audit due date. Assessment officer will levy penalty, whichever of the lower amount-
- Half of the total sales in case of businessman for the assessment year
- 5% of an individual’s gross income for the assessment year.
- A fixed amount of Rs1, 50,000.
So, we should be ready for tax audit due date for this financial year .Seek the advice of your tax advisor and keep your documents ready.
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