Tax Audit

Let's have a glance,tax audit is the process of verification and inspection of the accounts of a taxpayer to confirm their adherence to the provisions of the Income Tax law. Section 44AB of the Income Tax Act, 1961 deals with the Audit of the Accounts of a certain category of persons carrying on a business or engaged in a profession.Its core purpose is to ensure that you or your business abides by the tax laws put in place by the Income Tax Act of India. Once complete, the tax audit makes it easy for you to file tax returns.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.The tax audit meaning refers to a formal investigation conducted by the federal tax agency or state tax authority to confirm whether a taxpayer paid taxes correctly.