While most taxpayers become accustomed to the complexities of tax planning before filing, there is always a chance for mistakes. Making decisions under the guidance of an expert is essential. Getting assistance from a chartered accountant will help you avoid misreading reports or ignoring expenses. Here are the specifics outlined by MPVD & Associates for having a tax review and submitting a tax audit report.
Guidelines for TDS Filing in India
A big part of TDS return filing services includes auditing key financial statements to adhere to the correct accounting principles and laws imposed by the government.
The guidelines by which the auditee must be audited are laid out in Section 44AB of the Chartered Accountants Act. A tax audit report must be submitted along with the income tax return for some income tax assessees. These taxpayers submit either Form 3CB-3CD or Form 3CA-3CD, depending on the situation.
A certified CPA must audit taxes as required by Section 44AB and provide ITR filing services. It is optional to appoint a central authority-appointed statutory auditor. A statutory or nominated accountant or any other chartered accountant with a full-time profession may conduct tax audits.
The Main Responsibilities of Chartered Accountants When Handling Tax Audits
One of a chartered accountant’s (CA) primary responsibilities is handling tax audits, and MPVD & Associates leaves no stone unturned to provide a one-stop-shop for not only tax auditing and review but also company audits and useful NRI tax advisory services in Kolkata.
Below are the core services we offer under tax auditing.
Document preparation and submission: During the audit process, the tax authorities will require that CAs prepare and submit all essential papers. These documents include but are not limited to, financial statements, tax returns, and other pertinent information related to cash flow, bills, and voluntary transactions.
Communication with tax authorities: CAs are also in charge of speaking with the tax authorities on their client’s behalf. This includes answering questions, giving justifications, and offering any extra data that may be needed.
Review: After the tax authorities have finished their audit, it is the responsibility of the CAs to examine the tax assessments to make sure they are accurate and reasonable. The CA will attempt to get any anomalies or mistakes addressed by the tax authorities.
Tax audit consulting: Throughout the audit process, CAs are in charge of giving their customers advice and direction on how to navigate the process and minimize any potential impact on their businesses.
Tax audits are the standard practice for maintaining books of accounts, streamlining revenue without fraud or errors, and logically simplifying the processes for income tax authorities in calculating and analyzing the accuracy of a person’s or company’s income tax return.
They are not intended to intimidate or restrict businesses operating in the country. A thorough tax audit ensures that firms and professionals can experience a period of systematic growth with accurate tax deductions.
Also Read: Importance of ITR filing for sole proprietors
What to Expect When You Appoint MPVD & Associates for a Tax Audit
Third-party chartered accountants like MPVD & Associates are recommended to offer an unbiased report without any personal stake in the company or the auditee.
It is the responsibility of the Board of Directors to appoint the tax auditor at the right time with a letter of appointment, and if they deem it necessary, they can also appoint multiple auditors.
A chartered accountant cannot accept more than 60 tax audit assignments in a calendar year, as stated in Section 44AB. As a result, there are some restrictions on how many tax audits we can carry out in a given year. We won’t be able to take on any more tax audit jobs once we reach our limited number of projects.