tax audit

Others 957 views 3 replies

hi friends,

how is tax audit done?

why it is  considered to be different from normal audits?

can u pls help me with some examples

thanx

Replies (3)
Tax audit is an audit to find out the accurate tax payable 
by the company as per the income tax 1961. And ensure that
all statutory payments are remitted on or before the
respective due dates by company.

Moreover, it helps to find out the difference between
Company's act and income tax act. The difference is called
deffered tax assets and liability of the company.

that difference is what ? can u explain in detail ?   please'

 

Tax Auditor does audit as per Income Tax Act 1962.

Whereas Statutory Auditor does audit as per Companies Act, 1962 and Statutory auditor is appointed under section 224 of Companies Act.

Few important Differences :

 In Statutory Audit We prepare Fianancial Statements (i.e P & L ,B/S ,etc),While in Tax Audit we need to give tax audit report in form 3CA and particulars of statement in 3CD.in other word we need to fill up data in 3cd statements as reuquired in Income tax act.

Tax Audit is Done only When Gross turnover of the Said assesse is above 40 lac & in case of Professional  limit is  10 lacs, however there is no such relaxation in statutory audit. in case of Company.

i hope this answers your question.


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