Income-tax Act, 1961 provides no exemption to senior citizen or very senior citizen from filing of return of income. However, to provide relief to the senior citizens (whose age is 75 years or more) and to reduce the compliance burden on them, the Finance Act, 2021, has inserted a new section 194P. This provision requires a […]
What are the benefits available in respect of interest on deposits in case of senior citizens?
Section 80TTB of the Income Tax law gives provisions relating to tax benefits available on account of interest income from deposits with banks or post office or co-operative banks of an amount upto Rs. 50,000 earned by the senior citizen (i.e., an individual of the age of 60 years or above). Interest earned on saving deposits […]
At what age a person will qualify as a senior citizen and very senior citizen under the income-tax Law?
Before understanding the age criteria, it is very important to know that the tax benefits offered under the Income-tax Law to a senior citizen/very senior citizen are available only to resident senior citizen and resident very senior citizens. In other words, these benefits are not available to a non-resident even though he may be of […]
What is the penalty for not getting the accounts audited as required by section 44AB?
According to section 271B, if any person who is required to comply with section 44AB fails to get his accounts audited in respect of any year or years as required under section 44AB or furnish such report as required under section 44AB, the Assessing Officer may impose a penalty. The penalty shall be lower of the following amounts: (a) 0.5% of the […]
What is the due date by which a taxpayer should get his accounts audited?
A person covered by section 44AB should get his accounts audited and should obtain the audit report on or before 30th September of the relevant assessment year, e.g., Tax audit report for the financial year 2022-23 corresponding to the assessment year 2023-24 should be obtained on or before 30th September, 2023. The tax audit report is to […]
What are Form Nos. 3CA/3CB and 3CD?
The report of the tax audit conducted by the chartered accountant is to be furnished in the prescribed form. The form prescribed for audit report in respect of audit conducted under section 44AB is Form No. 3CB and the prescribed particulars are to be reported in Form No. 3CD. In case of persons covered under previous FAQ, i.e., who are required […]
As per section 44AB, who is compulsorily required to get his accounts audited, i.e., who is covered by tax audit?
As per section 44AB, following persons are compulsorily required to get their accounts audited : • A person carrying on business, if his total sales, turnover or gross receipts (as the case may be) in business for the year exceed or exceeds Rs. 1 crore. This provision is not applicable to the person, who opts for […]
What is the objective of tax audit?
One of the objectives of tax audit is to ascertain/derive/report the requirements of Form Nos. 3CA/3CB and 3CD. Apart from reporting requirements of Form Nos. 3CA/3CB and 3CD, a proper audit for tax purposes would ensure that the books of account and other records are properly maintained, that they truly reflect the income of the taxpayer and claims for deduction […]
What is tax audit?
The dictionary meaning of the term “audit” is check, review, inspection, etc. There are various types of audits prescribed under different laws like company law requires a company audit, cost accounting law requires a cost audit, etc. The Income-tax Law requires the taxpayer to get the audit of the accounts of his business/profession from the […]
I have sold land and earned capital gains. Whether I have to mention the date and sale of such land sold in the ITR forms?
Tax is deductible when buyer paid or payable exceeding the Rs 50 lakhs at the time credit of such amount to the seller or at the time of making payment. For the purpose of computation of threshold limit GST will be included. Tax deduction rate is .01 percent In case PAN is not available rate […]