What is the deadline for submitting an income tax audit report?

Certain taxpayers are required to perform an obligatory income tax audit in accordance with the provisions of the Income-tax Act, 1961. An income tax audit involves a comprehensive examination of the financial records of a business entity or individual professional.

The government's requirement for income tax audits for businessmen and professionals who earn a certain amount shows its commitment to transparency and responsibility in finances. This rule has multiple purposes. Firstly, it ensures that financial records and income tax returns accurately reflect real financial activities. 

Secondly, these audits discourage tax evasion by preventing entities from falsely reporting income or inflating expenses to pay less tax," explains Sandeep Agrawal, a Chartered Accountant and Director at TeamLease Regtech, a company specializing in regulatory compliance technology.

When is the deadline to submit a tax audit report? 

According to Vijay Bharech, Director at Deloitte Haskins & Sells LLP, a business and tax consultancy firm, taxpayers who need to conduct a tax audit should ensure their books of accounts are audited and the audit report is obtained by September 30th of the relevant assessment year. 

For instance, if an individual is required to undergo a tax audit for business or professional income in the fiscal year 2022-23, exceeding the audit threshold, they must complete the audit by September 30, 2023, and upload the report on the ITR portal by the same date.

The deadline for filing Income Tax Returns & their audit requirements. 

According to Aditya Chopra from Victoriam Legalis - Advocates & Solicitors, taxpayers needing to submit an audit report under Section 44AB have a due date of October 31st in the assessment year. 

For instance, if someone has business or professional income that requires an audit for the fiscal year 2022-23 (Assessment Year 2023-24), they must complete the audit by September 30, 2023. 

Then, they need to file their ITR along with the audit report by October 31, 2023. This means taxpayers in this category must remember two essential dates: the tax audit report deadline (September 30) and the ITR filing deadline along with the report (October 31).

Whom should you consider to conduct this tax audit?

If you need to conduct an income tax audit, it's important to know that you will be required to hire two different chartered accountants. One accountant will handle your books of accounts and everyday operations, while the other will perform the audit for tax purposes. 

The chartered accountant doing the audit cannot handle your day-to-day tasks. After the audit is done, the chartered accountant will e-file the tax audit report. Then, you as the taxpayer need to approve the report through your e-filing account with the Income-tax Department.

Also Read: Income Tax Department Plans to Reduce Refund Processing Time to 10 Days Starting this Fiscal Year