Taxation
Income tax is covered under Section 44 AB of the Income Tax Act, 1961. As per this rule, all businesses will be thoroughly examined on their financial parameters by an outside agency; all eventually to qualify for the reliefs and deductions, for payment of your income tax to the government. The estimations are done by some experienced tax auditors.
Indian tax legislative and Tax authority is developing gradually on the lines of global economy & operations. Businesses operating under the Indian tax regime are faced with greater complexities and challenges. Now, more than ever, businesses must have a proactive strategy for adapting to all the changeovers to stay in the business world.
To a corporate business, understanding the tax structure is strenuous and cause to cease effective operations with delays and inefficiencies as well as substantial tax burdens for a misstep or lack of knowledge. With our expertise, the income tax consultants in Bangalore here will get you all the imminent details, updated and upgraded in time.
Our expert advisory team of Auditors in Bangalore provides a methodology that focuses on helping corporate managements to make informed tax decisions, implement improvements to the way they manage their tax affairs in support of business operations, and address risks associated with non-compliance.
We offer our direct tax advisory services, with the aid of experienced GST consultants in Bangalore, to smoothen the corporate management hurdles and focus on their growth & competition of a business.
Tax Advisory and Support Services
- Advising a suitable entity establishment with the expert recommendations from our income tax consultants in Bangalore.
- Addressing & examining concerns about tax implication on cash flows of an entity.
- Our team of Auditors & Tax Consultants in Bangalore and professionals will review the entire tax structure of the entity and suggest benefits provided under the law.
- Addresses new changes and the impact of any tax and regulatory amendments.
- Tax Consultants Bangalore’s assistance to make informed tax decisions, implement and improve, aligned with your business plan.
- Representation before the tax authorities in cases of tax demands, scrutinies, or disputes.
- Tax audits for companies and firms in form 3CD as prescribed by the Income Tax authorities.
- Transfer the pricing studies. (link transfer pricing page).
Who is mandatorily subject to tax audit?
A taxpayer is required to have a tax audit carried out if the sales, turnover or gross receipts of business exceed Rs 1 crore in the financial year. However, a taxpayer may be required to get their accounts audited in certain other circumstances. We have categorised the various circumstances in the tables mentioned below:
NOTE: The threshold limit of Rs 1 crore for a tax audit is 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.
We present the various categories of taxpayers below:
| Category of person | Threshold |
| Business | |
| Carrying on business (not opting for presumptive taxation scheme*) | Total sales, turnover or gross receipts exceed Rs 1 crore in the FY |
| Carrying on business eligible for presumptive taxation under Section 44AE, 44BB or 44BBB | Claims profits or gains lower than the prescribed limit under presumptive taxation scheme |
| Carrying on business eligible for presumptive taxation under Section 44AD | Declares taxable income below the limits prescribed under the presumptive tax scheme and has income exceeding the basic threshold limit |
| Carrying on the business and is not eligible to claim presumptive taxation under Section 44AD due to opting out for presumptive taxation in any one financial year of the lock-in period i.e. 5 consecutive years from when the presumptive tax scheme was opted | If income exceeds the maximum amount not chargeable to tax in the subsequent 5 consecutive tax years from the financial year when the presumptive taxation was not opted for |
| Carrying on business which is declaring profits as per presumptive taxation scheme under Section 44AD | If the total sales, turnover or gross receipts does not exceed Rs 2 crore in the financial year, then tax audit will not apply to such businesses. |
| Profession | |
| Carrying on profession | Total gross receipts exceed Rs 50 lakh in the FY |
| Carrying on the profession eligible for presumptive taxation under Section 44ADA | 1. Claims profits or gains lower than the prescribed limit under the presumptive taxation scheme
2. Income exceeds the maximum amount not chargeable to income tax |
Remember, there are separate threshold limits for each category of tax applicability mentioned above. You can talk with our income tax consultants in Bangalore to get more information on the same.
How Can BSJ & Associates Help You Here?
If you are looking for experienced or updated tax auditors in Bangalore, then you are at the right place. BSJ & Associates holds decades of experience and expertise, partnering with numerous business firms and corporate professionals, and our teams have helped them grow better with a sense of lawful security. Our broad array of income tax audit & services in Bangalore will get your business covered with your requirements right within your budgets. And most notably, we will also guarantee that the entire tax auditing and payment is a seamless and expedited experience for you!
FAQs
What is the objective of the Tax Audit?
The objectives of the tax audit are to report the tax depreciation, total income, and claim for deductions for a business taxpayer. Tax audit is mandatory for all the business that exceed Specified Threshold limit.
As per Section 44AB, who is compulsorily required to get his accounts audited, i.e., who is covered by tax audit?
| Category of person | Threshold |
| Business | |
| Carrying on business (not opting for presumptive taxation scheme*) | Total sales, turnover or gross receipts exceed Rs 1 crore in the FY |
| Carrying on business eligible for presumptive taxation under Section 44AE, 44BB or 44BBB | Claims profits or gains lower than the prescribed limit under presumptive taxation scheme |
| Carrying on business eligible for presumptive taxation under Section 44AD | Declares taxable income below the limits prescribed under the presumptive tax scheme and has income exceeding the basic threshold limit |
| Carrying on the business and is not eligible to claim presumptive taxation under Section 44AD due to opting out for presumptive taxation in any one financial year of the lock-in period i.e. 5 consecutive years from when the presumptive tax scheme was opted | If income exceeds the maximum amount not chargeable to tax in the subsequent 5 consecutive tax years from the financial year when the presumptive taxation was not opted for |
| Carrying on business which is declaring profits as per presumptive taxation scheme under Section 44AD | If the total sales, turnover or gross receipts does not exceed Rs 2 crore in the financial year, then tax audit will not apply to such businesses. |
| Profession | |
| Carrying on profession | Total gross receipts exceed Rs 50 lakh in the FY |
| Carrying on the profession eligible for presumptive taxation under Section 44ADA | 1. Claims profits or gains lower than the prescribed limit under the presumptive taxation scheme
2. Income exceeds the maximum amount not chargeable to income tax |
What are Form Nos. 3CA and 3CB?
The 3CB Form is the prescribed document by any Registered Chartered Accountant for tax auditing, whereas the particular and tax reports will be detailed in Form no. 3CD. These formats are in line with Section 44AB.