Deadline for filing an income tax audit report for the financial year 2022-23 under section 44AB of the Income tax act, 1961, with the Government of India was 30th September 2023. This deadline has not been extended by the income tax department.
For the financial year 2023-24, the deadline for filing income tax audit reports under section 44AB will be 30th September 2024.
If you have missed the deadline of filing for the financial year 2022-23 (assessment year 2023-24) due to some reason, then you can still file it by paying a penalty.
As per tax laws, for non filing of income tax audit report under section 44AB of the Income tax act, 1961, a penalty of 0.5% of the total sales or turnover or gross receipt or 1,50,000 rupees whichever is lower can be levied by the assessing officer.
Do not get confused with income tax audit report filing and income tax return filing. Both are different. First, you need to file the tax audit report and then with the details of the audit report, you file your income tax return.
Income tax return filing deadline for the financial year 2022-23 (assessment year 2023-24 ) is 31st October 2023. You need to file your tax audit report before filing your income tax return.
If the income tax return (ITR) is filed without submitting the tax audit report, then the ITR filed by you will be considered as defective. After filing, you will receive notice to refile by rectifying the defect.
If the defective income tax return is not corrected within the specified time allowed, then the ITR will be treated as invalid and considered as not being filed. Interest and penal provisions will be applicable for not filing income tax return and for short or non payment of taxes if any.
In case you missed both the income tax return filing deadline and tax audit report filing, then you can still file it before the end of december. However, in addition to the tax audit report filing penalty, you are also required to pay a late fee for filing a belated return.
However, if you are able to convince your assessing officer with reason for delay in filing the income tax audit report, then the Assessing officer may not impose a penalty.
Frequently asked question on income tax audit under section 44AB
Who can audit the books of account under section 44AB?
A chartered accountant in practice should audit your books of account under section 44AB. As per law, no other person can audit your books of account as required under section 44AB of the Income tax act, 1961.
When tax audit under section 44AB is applicable and who has to get their books of account audited U/S 44AB?
Tax audit under section 44AB is applicable only if an individual has business or professional income above a certain specified limit.
If total sales or gross receipts from business exceeds 1 Crore rupees in a financial year, then tax audit under section 44AB is a must.
Rs 1 Crore threshold limit will be increased to Rs 10 Crore when cash receipts and payments during the year do not exceed 5% of the total receipts or payments.
Professionals like chartered accountants, IT, doctors, lawyers are required to conduct income tax audit under section 44AB if their gross receipt for the financial year exceeds 50,00,000 rupees.
If your annual profit and gains from business or profession are lower than the profits and gains specified as per presumptive income tax scheme and income exceeds the basic exemption limit, then you are required to get your accounts audited by a practicing chartered accountant.
