Indore: A penalty of up to Rs 1.5 lakh will be imposed on the taxpayer if the audit report prepared by CA is not filed to the income Tax deparment on time.
Several tips were given by experts in a webinar organized by ICAI's Indore branch. CA Pramod Jain, ICAI's Central Council Member and Vice Chairman of Direct Tax Committee, interacted with members and answered questions. He said for traders whose turnover was up to Rs 5 crore and less than 5% of their total receipts are in cash or less than 5% of the total payments are in cash, then the limit for conducting a tax audit for them is instead of Rs 1 crore it will be Rs 5 crore. In such a situation, to check the limit of Rs 5 crore, one has to create a receipt payment account and see how much has been taken or given in cash in the total receipts or payments.
Udesh Dasani of the city and the session chairman of the webinar, discussed the importance of tax audit, he said that due to the faceless assessment and faceless appeal currently announced by the Prime Minister, the importance of tax audit has increased. He also said that documentation also has a special importance. Nowadays, CAs are questioned in many cases and if documentation of various types are not followed, it will pose as a problem in future.
CA Kemisha Soni, Chairperson of the ICAI's Ethical Standard Board, said that auditors will also have to make changes to their audit procedures, given the covid scenario, the auditor will have to look at the business industry to see if it is being affected.
CA Indore Branch chairman Harsh Firoda said according to the provisions of income tax, if the turnover of a trader is more than Rs 1 crore or Rs 5 crore, then all such businessmen have to get their audit done by CA and a report has to be submitted to the Income Tax Department online. There is provision for a penalty of up to Rs 1.5 lakh if the report is not submitted on time. Due to Corona this year, the deadline for tax audit has been fixed on 31 October.