Understanding Income Tax Audit: Key Details, Important Deadlines, And Consequences Of Non-Compliance | Paisa Live

An income tax audit in India is mandatory for businesses with annual sales or turnover exceeding ₹1 crore and for professionals with gross receipts over ₹50 lakh. This audit is essential to verify accurate account maintenance and ensure correct income tax calculations according to the law. Conducted by a chartered accountant (CA), the audit report is prepared in a specific format, and the CA also files the Income Tax Return (ITR). Failure to conduct the audit may result in penalties of up to ₹15 lakh or 0.5% of turnover, whichever is lower. For the 2023-24 financial year, the deadline for filing the tax audit report has been extended to October 7, 2024, from the usual September 30 deadline due to difficulties faced by taxpayers.