Tax audit
This query is : Resolved
08 March 2013
I want to know the followings .......
1. Is Income Tax Auditor is responsible for filing e-return for his client?
2. If return(although audit done timely)was not timely filed, who will be responsible,consequences of this, interest and penalties?
3. Is there a system of special no. to quote in audit report or Is there any change in the system of tax audit in compared to last year?
4. Any other important thing, you want to share with me in this concern.
I shall be thankful.
Regards
CA ASHWANI MAURYA
1. Is Income Tax Auditor is responsible for filing e-return for his client?
2. If return(although audit done timely)was not timely filed, who will be responsible,consequences of this, interest and penalties?
3. Is there a system of special no. to quote in audit report or Is there any change in the system of tax audit in compared to last year?
4. Any other important thing, you want to share with me in this concern.
I shall be thankful.
Regards
CA ASHWANI MAURYA
08 March 2013
dear CA Ashwani Maurya..
as per sec. 139(1) of income tax Act.
every person( except firm or company) whose total income with giving effect to the provisions of chapter VI-A exceeds the minimum limit not chargeable to tax is liable to file its income tax return.
therefore liability for non filing of return is of assessee. his consultant is not responsible for the same.
as per sec. 139(1) of income tax Act.
every person( except firm or company) whose total income with giving effect to the provisions of chapter VI-A exceeds the minimum limit not chargeable to tax is liable to file its income tax return.
therefore liability for non filing of return is of assessee. his consultant is not responsible for the same.
26 March 2013
Thank you Piyush Ji for answering my First question..
I want to be replied for the rest of quetions.
Best Regards
CA Ashwani Maurya
Lucknow.
I want to be replied for the rest of quetions.
Best Regards
CA Ashwani Maurya
Lucknow.
26 March 2013
Please answer my queries.
26 July 2025
Sure! Here’s a detailed response to all your questions on tax audit and related responsibilities:
---
### 1. **Is Income Tax Auditor responsible for filing e-return for his client?**
* **No.** The legal responsibility to file the Income Tax Return (ITR) lies with the **assessee (taxpayer)**, not the auditor or consultant.
* The auditor **may assist** in preparing the audited accounts and tax audit report, but **filing the return is the assessee’s duty** as per Section 139(1) of the Income Tax Act.
* If the return is not filed timely, the assessee alone is liable for consequences, not the auditor.
---
### 2. **If return (although audit done timely) was not timely filed, who will be responsible? Consequences, interest, penalties?**
* The **assessee (taxpayer)** is solely responsible for filing the ITR on time.
* **Consequences of late filing or non-filing include:**
* **Penalty under Section 271F:** Up to ₹5,000 if return is not filed by the due date (31st October for audit cases).
* **Interest under Section 234A:** Interest at 1% per month or part of the month on the tax payable from due date till the date of filing.
* **Disallowance of certain carry-forward benefits:** Losses cannot be carried forward if return is filed late beyond due date.
* Possible **scrutiny or notice from the tax department.**
* Auditor or tax consultant is **not legally responsible**, but professional reputation can be impacted.
---
### 3. **Is there a system of special number to quote in audit report or any changes in tax audit system compared to last year?**
* **Yes, from FY 2012-13 (AY 2013-14) onwards, quoting of ‘Unique Document Identification Number’ (UDIN) by Chartered Accountants in audit reports, including tax audit reports, is mandatory.**
* UDIN is issued by ICAI to prevent forgery and misuse of audit reports.
* The tax audit report format has also undergone changes over the years to include more details on compliance, turnover, and related party transactions.
* Always check for **latest prescribed formats and guidelines** from the Income Tax Department or ICAI before filing.
---
### 4. **Any other important points to share:**
* **Due date for tax audit return filing:** Usually, 30th September (extended sometimes), with possible extension up to 31st October or later as notified.
* **Penalty for late tax audit report filing:** Under Section 271B, penalty up to ₹1,50,000 may be levied for failure to get accounts audited within due date.
* **Tax audit applicability:** Tax audit is mandatory under Section 44AB if turnover exceeds prescribed limits (₹1 crore for business, ₹50 lakh for professionals).
* **Filing revised returns:** If errors are found after filing, assessee can file revised return before assessment proceedings start to avoid penalties.
* Always maintain proper **books of accounts and audit trail** to avoid complications during scrutiny.
---
If you want, I can help summarize these points or help you with draft replies or checklists for tax audit compliance. Just ask!
---
### 1. **Is Income Tax Auditor responsible for filing e-return for his client?**
* **No.** The legal responsibility to file the Income Tax Return (ITR) lies with the **assessee (taxpayer)**, not the auditor or consultant.
* The auditor **may assist** in preparing the audited accounts and tax audit report, but **filing the return is the assessee’s duty** as per Section 139(1) of the Income Tax Act.
* If the return is not filed timely, the assessee alone is liable for consequences, not the auditor.
---
### 2. **If return (although audit done timely) was not timely filed, who will be responsible? Consequences, interest, penalties?**
* The **assessee (taxpayer)** is solely responsible for filing the ITR on time.
* **Consequences of late filing or non-filing include:**
* **Penalty under Section 271F:** Up to ₹5,000 if return is not filed by the due date (31st October for audit cases).
* **Interest under Section 234A:** Interest at 1% per month or part of the month on the tax payable from due date till the date of filing.
* **Disallowance of certain carry-forward benefits:** Losses cannot be carried forward if return is filed late beyond due date.
* Possible **scrutiny or notice from the tax department.**
* Auditor or tax consultant is **not legally responsible**, but professional reputation can be impacted.
---
### 3. **Is there a system of special number to quote in audit report or any changes in tax audit system compared to last year?**
* **Yes, from FY 2012-13 (AY 2013-14) onwards, quoting of ‘Unique Document Identification Number’ (UDIN) by Chartered Accountants in audit reports, including tax audit reports, is mandatory.**
* UDIN is issued by ICAI to prevent forgery and misuse of audit reports.
* The tax audit report format has also undergone changes over the years to include more details on compliance, turnover, and related party transactions.
* Always check for **latest prescribed formats and guidelines** from the Income Tax Department or ICAI before filing.
---
### 4. **Any other important points to share:**
* **Due date for tax audit return filing:** Usually, 30th September (extended sometimes), with possible extension up to 31st October or later as notified.
* **Penalty for late tax audit report filing:** Under Section 271B, penalty up to ₹1,50,000 may be levied for failure to get accounts audited within due date.
* **Tax audit applicability:** Tax audit is mandatory under Section 44AB if turnover exceeds prescribed limits (₹1 crore for business, ₹50 lakh for professionals).
* **Filing revised returns:** If errors are found after filing, assessee can file revised return before assessment proceedings start to avoid penalties.
* Always maintain proper **books of accounts and audit trail** to avoid complications during scrutiny.
---
If you want, I can help summarize these points or help you with draft replies or checklists for tax audit compliance. Just ask!
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