#The Tax Heaven

[taxheaventhe]

As a business owner, staying updated with the latest tax regulations is essential. One important aspect of taxation that all business owners must be aware of is tax audit and its applicability to your business. Tax audit refers to the process of inspection and verification of the books of accounts of a taxpayer to ensure their adherence to the provisions of the Income-Tax Act, of 1961.

In India, Section 44AB of the Income-Tax Act, 1961 lays an obligation on certain persons mentioned thereunder carrying on business or profession, to get their accounts audited before the “specified date” by a Chartered Accountant, if their turnover exceeds the specified threshold limits or in cases where they are eligible to declare their income on a presumptive income basis as per section 44AD if they claim that their income is lower than the income so computed as per presumptive income.

The key objectives of the tax audit are as follows:

Ensures that the books of accounts are maintained properly and certified by a Chartered Accountant.

Prepares and submits an audit report according to the requirements of Form no. 3CA/3CB and 3CD.

Gives assurance to shareholders that the books of accounts are free from any discrepancies and financial statements and audit reports give a true and fair view of the business.

Helps in checking fraudulent practices.

It is important to understand the applicability of tax audit based on the category of person- business. Here’s a breakdown:

Assessee carrying on a business but not opting for presumptive taxation scheme:

Applicability:

If total sales, turnover, or gross receipts exceed INR one crore in the previous financial year.

If cash transactions are up to 5% of total gross receipts and payments, the threshold limit is increased to INR ten crores.

Assessee carrying on business eligible for presumptive taxation under Section 44AE, 44BB or 44BBB:

Applicability:

If the profit claimed is lower than the prescribed limit under the presumptive taxation scheme.

Assessee carrying on business eligible for the presumptive taxation under Section 44AD:

Applicability:

If taxable income declared is below the limits prescribed under the presumptive tax scheme and has income exceeding the basic threshold limit.

Assessee carrying on the business and is not eligible to claim presumptive taxation under Section 44AD due to opting out for presumptive taxation in any one financial year of the lock-in period i.e. 5 consecutive years from when the presumptive tax scheme has been opted:

Applicability:

If income exceeds the maximum amount not chargeable to tax in the subsequent 5 consecutive tax years from the financial year when the presumptive taxation was not opted for.

Assessee carrying on a business where declaring profits as per presumptive taxation scheme under Section 44AD:

Applicability:

If income exceeds the maximum amount not chargeable to tax in the subsequent 5 consecutive tax years from the financial year when the presumptive taxation was not opted for.

If the total sales, turnover, or gross receipts do not exceed Rs 2 crore in the financial year, then tax audit will not apply to such businesses.

Category of person - Profession:

Assessee carrying on the profession:

Applicability:

If the total sales, turnover, or gross receipts do not exceed Rs 2 crore in the financial year, then tax audit will not apply to such businesses.

Assessee carrying on a business where declaring profits as per presumptive taxation scheme under Section 44AD:

Applicability:

If the total sales, turnover, or gross receipts do not exceed Rs 2 crore in the financial year, then tax audit will not apply to such businesses.

Category of person - Business Loss:

Where the assessee is carrying on business with loss and has not opted for a presumptive taxation scheme under section 44AD:

Applicability:

Where total sales, turnover, or gross receipts exceed Rs 1 crore.

Where the assessee’s total income exceeds the basic threshold limit but he has incurred a loss from carrying on a business and not opted for a presumptive taxation scheme under section 44AD:

Applicability:

In case of loss from business when total sales, turnover, or gross receipts exceed INR 1 crore, the assessee is subject to tax audit under 44AB.

Where the assessee is carrying on a business (opted presumptive taxation scheme under section 44AD) and having a business loss but with income below the basic threshold limit:

Applicability:

Tax audit not applicable.

Where the assessee is carrying on a business (opted presumptive taxation scheme under section 44AD) and having a business loss but with income exceeding the basic threshold limit:

Applicability:

Declares taxable income below the limits prescribed under the presumptive tax scheme and has income exceeding the basic threshold limit.

Chartered accountants are responsible for providing the tax audit report. They must furnish the prescribed particulars in Form No. 3CD, which also forms a part of the audit report. The auditor shall furnish the tax audit report in any of the following prescribed forms: Form No. 3CA is furnished where an assessee is carrying on business or profession and is already mandated to get the books of accounts audited under any other law. Form No. 3CB is furnished where an assessee is carrying on business or profession and is not required to get the books of accounts audited under any other law.

If an assessee fails to comply with the provisions of section 44AB and does not get their books of account audited, they will be liable to pay a penalty as per section 271B. According to section 271B, the penalty shall be lower of the following amounts: (a) 0.5% of the total sales, turnover, or gross receipts or (b) Rs. 1,50,000.

In conclusion, it’s important for business owners to determine if they meet the criteria for tax audit applicability based on their category of person - business. Not complying with tax audit regulations can lead to hefty penalties. It's advisable to seek the help of a chartered accountant to ensure the timely preparation and submission of your tax audit report.

Note: Looking for professional tax audit services in India? At The Tax Heaven, we offer expert tax audit solutions for businesses, ensuring compliance and accuracy. Our experienced team specializes in comprehensive tax audit services tailored to meet your business's unique needs. Partner with us for reliable and efficient tax audit solutions. https://www.thetaxheaven.com/

[thetaxheaven24]

How to File Income Tax Return Online in E-Filing

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[muzsmoux]

The heavenly realm has a subtotal of a quadrillion braincells and all of them are Ling Wen's.

[chungledown-bimothy]

My bf is SO Dale Lee coded.

We were watching Unsleeping City, middle of the Hall of Heroes scene, and he notices that a squirrel had falllen asleep on a tree branch outside the window.

So now we've stopped watching so he can make coffee and sit on the patio to watch the squirrel for a while.

[one-time-i-dreamt]

I made a deal with the Devil to get into Heaven (I committed tax fraud) and when I got there, everything was drawn in Sam O’Nella’s art style and God from Puppet History was there too.

[adventure-waffles]

Mornings in Paradise Manor

[gorjee-art]

Sometimes I remember how In the helluva/hazbin universe heaven and hell just don’t have any remarkable distinction other than set dressing.

Technically heaven is no different than hell other than it’s aesthetics and the people that reside there.

What level of capitalism is this???

[pandorasgiftbox]

dont mind me just recruiting my fiance to help figure out the tax benefits theyd have in hell for this radiorose fic

me: imagine tho having to pay taxes right after the extermination

him: if you really want to be evil, they have to pay taxes the day before extermination day so they can get money out of sinners before they die

update: they are now using these benefits to commit tax evasion :)

[goatyuuji]

They realised they are NOT built for this

[blueberry-lemon]

You can only choose one to file your taxes with.

[gothsuguru]

suguru gives off hot milf vibes while i give off deadbeat dilf vibes. no i will not elaborate

[taxheaventhe]

Tax Audit Services in India for Businesses The Tax Heaven

Looking for professional tax audit services in India? At The Tax Heaven, we offer expert tax audit solutions for businesses, ensuring compliance and accuracy. Our experienced team specializes in comprehensive tax audit services tailored to meet your business's unique needs. Partner with us for reliable and efficient tax audit solutions. https://www.thetaxheaven.com/

[vox-phantom]

not to talk about the unsleeping city again but. sofia and dale's story. sofia who thought her husband left her for some girl only to be awakened to a magical new york and find out he was killed by that same girl (who was also an actual succubus). sofia who avenged dale's death but still couldn't cope with it until ricky gave up his questing blade so that dale could break out of heaven every 3 months and be with her for a little while. sofia who wanted nothing more than to bring dale back because they live in a magical world and if she can't do it now, then when- and dale who wanted nothing more than to be with sofia but didn't want to hold her life back. sofia who never gave up even if hope was all lost until she literally travelled into the stories about dale she wrote for her (angelic) baby and managed to fucking bring dale back to life against all odds. love is fucking real and it's two monks from staten island in a magical new york

[hasdrubal-gisco]

here's a heads up for the next civilizational step - feudalism 2 ! you can already see it beginning to form. the centralization of states that dominated the 19th and 20th centuries (sidebar. considering switching to the french style when referencing centuries, in this case eg. XIXth and XXth - do we like ?) emerged at a time when the productive parts of the economy (laborers, natural resources, capital (real and money)) had a much tougher time moving around – not so much the case today. financial capital can move around relatively easily, increases in productivity and infrastructure have made it so that startup cost to for example build a new factory elsewhere are much lower than before, relatively speaking. people can move around much more easily (source: the tumblr dashboard, linkedin recruiters). we’ve already seen countries deliberately change their legislative systems in order to attract money and people from abroad – think city states and tax havens like singapore, dubai, monaco, belize. the national bank of lithuania (a country with a population of 3m) gave revolut (fintech company) a banking license which counts for the whole of the EU, so now there are something like 50m bank accounts registered in and insured by the national bank of lithuania. this kind of competitive advantage-seeking behavior will only continue (because as long as there are arbitrage opportunities, it will work). the easiest way for countries on the losing side of this trade to hedge their losses is to enforce a feudal serf-citizen status. a french passport will not mean a right to participate in the french political system, but rather an obligation to the state treasury. the US already does this – if you have a US passport, you have to disclose your income to the IRS even if you live and work elsewhere, and have that other country designated as your tax home; you have to annually disclose to the IRS all international bank accounts holding more than $10k (if you don’t, that’s okay. every bank you can think of (excl. in switzerland) voluntarily provides detailed info on every account held by US citizens – look up FBAR and the array of international agreements to support this). the UK has long struggled with people pulling out every penny and asset out of the UK economy because of high tax rates, and while there’s no chance france will pass a marginal 90% income tax rate over 400k EUR/y, the solution will simply be to put the money and declare income elsewhere – while still living and working in france. The only solution (from a state’s view) is the american model of you being a serf, and being subject to THEIR rules regardless of where you go

[tanglesline]

they’re both pink so it works!

he even bought he beefcase just for your taxes

[ninja-nerd]

Yknow that post that’s like, people shouldn’t go to jail for crimes that are objectively funny?

I think that applies to the people who made that anime girl dating sim that does your taxes for you. If any identity theft comes from that I feel like they shouldn’t get in trouble for it because holy shit