INCOME TAX AUDIT & TDS

Before understanding what is tax audit, let us have clarity on the meaning of the term ‘audit’. Dictionary meaning of the term ‘Audit’ suggests that it is an official inspection of an organization’s accounts and production of a report, typically by an independent body/ a systematic review or assessment of something.

WHAT IS TAX AUDIT?

There are various kinds of audit being conducted under different laws such as company audit/statutory audit conducted under company law provisions, cost audit, stock audit etc. Similarly, Income tax law also mandates an audit called ‘Tax Audit’. As the name itself suggests, Tax audit is an examination/review of accounts of any business /profession carried out by the taxpayer from an income tax viewpoint. A Tax audit makes the process of income computation for filing of return of income, much easier.

Objectives of tax audit

Tax audit is conducted to achieve the following objectives:

Ensure proper maintenance and correctness of books of accounts and certification of the same by tax auditor
Reporting of observations/discrepancies noted by tax auditor after a methodical examination of books of account
Reporting prescribed information such as tax depreciation, compliance of various provisions of income tax law etc. This in turn enables and also saves time of tax authorities in verifying the correctness of income tax return filed by the taxpayer such as total income, claim for deductions etc

Tax Deducted at Source (TDS) is a means of collecting income tax in India, under the Indian Income Tax Act of 1961. Any payment covered under these provisions shall be paid after deducting prescribed percentage. It is managed by the Central Board for Direct Taxes (CBDT) and is part of the Department of Revenue managed by Indian Revenue Service . It has a great importance while conducting tax audits. Assessee is also required to file quarterly return to CBDT. Returns states the TDS deducted & paid to government during the Quarter to which it relates.

Our Services includes

TDS compliance & Income Tax Returns
Consultation for TDS deduction and Payments
Analysis of books for TDS compliance
TDS Return Filling
(Form 24Q, 26Q, 27Q (NRI) & 27EQ (TCS))
15G & 15H Return Filling
Income Tax Returns
Audit outsourcing
Internal Audits
Statutory Audits
Stock Audit

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