For businesses having gross receipts of more than Rs 1 crore in a financial year are liable for tax audit.The due date of filing the tax audit report is 30th September of the assessment year. The tax audit report must be filed electronically via Form 3CD. For taxpayers subject to tax audit, the due date for filing of return of income is also 30 September of the assessment year.Under normal circumstances, revision of a tax audit report is not possible. However, in cases where the accounts have been revised it is possible to revise the tax audit report.

Presumptive Taxation

Presumptive taxation for businesses is covered under section 44AD of the income tax act. Any business which has a turnover of less than Rs 2 crore can opt to be taxed presumptively. They must declare profits of 8% for non-digital transactions or 6% for digital transactions, whichever one is applicable. The following businesses are excluded from presumptive taxation:

a. Life insurance agents.

b. Commission of any kind.

c. Running the business of plying, hiring or leasing goods carriages.

Benefits of Presumptive Taxation

• In presumptive taxation under Section 44AD, your net income is considered as 8% of your turnover and you will pay tax on that income.

• If your receipts are in digital (non-cash) form then only 6% of your receipts is your net income and you will pay tax on that income.

• You don’t have to maintain accounting records.

• You don’t have to get your accounting records audited.

• You have to pay advance tax – but instead of estimating income and paying tax each quarter, you can pay all your advance tax before March 31. Advance tax, for taxpayers having opted for the presumptive scheme, is to be paid by 15th March of the relevant financial year if you expect that your income tax liability will exceed Rs.10,000 in the financial year.

• Due date for filing of tax audit report – 30th September of the assessment year

• Due date for return filing (if tax audit is applicable) – 30th September of the assessment year

• Due date for return filing (if tax audit is not applicable) – 31st July of the assessment year