Tax Audit Form

What are tax audit forms??

The person conducting a tax audit has to provide the findings in a report using specified 'Audit Forms' prescribed by the income tax department. Section 44AB prescribes Forms 3CA and 3CB. Along with these two forms, the auditor has to furnish a form 3CD..

What is the difference between Form 3CD and 3CB??

While audit requirement is compulsory requiring submission of Form 3CA, no such mandatory requirement exists in the case of Form 3CB. The main difference between Form 3CA and Form 3CD on the other hand is related to the fact that Form 3CD is a very detailed statement of accounts used as a supporting document for Form 3CA.

What is the limit for tax audit??

Update: The threshold limit of Rs 1 crore for a tax audit has been increased to Rs 5 crore with effect from AY 2020-21 (FY 2019-20) if the taxpayer's cash receipts are limited to 5% of the gross receipts or turnover, and if the taxpayer's cash payments are limited to 5% of the aggregate payments.

Who is eligible for tax audit??

As per section 44AB, the 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..