1. Tax audit is a review of accounts of taxpayers with business or profession from an income tax point of view such as incomes, deduction, compliance with tax laws etc.
2. Taxpayers with turnover exceeding Rs 1 crore in business (not opted for presumptive taxation scheme) or whose gross professional income is over Rs 50 lakh need to get a tax audit done.
3. Tax audit ensures proper maintenance of books of accounts and certification by a tax auditor.
4. Tax audit report needs to be filed on or before the 30 September of the subsequent year in case of taxpayers who have not entered into an international transaction.
5. If the taxpayer who is required to get his books audited fails to do so then he is liable for paying penalty of 0.5% of his turnover /gross receipts subject to a maximum of Rs 1.5 lakh.