All In One Tax Compliance Checklist For Ay 2022-23 (ITR Due Dates, Tax Audit, Presumptive Tax)
This article will provide you complete guidance on Income Tax Return Due Dates, Tax Audit applicability and Presumptive Taxation.
ITR DUE-DATES FOR FY 2021-22 (AY 2022-23)
| S.NO | PARTICULARS | DUE DATE |
| (a) | Any person who is required to get accounts audited under Income Tax Act or any other law | 31-Oct-2022 |
| (b) | Assessees who are required to furnish Transfer pricing Reports u/s. 92E | 30-Nov-2022 |
| (c) | Assessees not covered in (a) & (b) above
[Non-Audit Cases] |
31-Jul-2022 |
SEC 44AB – TAX APPLICABILITY AUDIT FOR FY 2021-22 (AY 2022-23)
Who is applicable for mandatory Tax Audit?
Any person carrying on BUSINESS whose
√ Total Sales/ T/o /Gross receipts exceeds 1 Crore in the FY
√ Whereas if Cash Transactions (Receipts & Payments) does not exceed 5% of the total transactions threshold limit of turnover is increased to 10 Crores.
Any person carrying on PROFESSION whose
√ Total Gross Receipts exceeds Rs. 50 lakhs in the FY
What happens if a person is required to get his accounts audited under any other law?
For eg. A company is mandatorily required to get its accounts audited under Companies Act. In such cases it is sufficient if such person gets its accounts audited under such law within the specified date and furnishes prescribed audit report under Income Tax Law.
What constitutes an audit report?
The Tax Auditor shall furnish his audit report in a prescribed form which could be
- Form 3CA – A person who is required to get its accounts audited under any other law (eg. Company)
- Form 3CB – A person who is required to get its accounts audited under Income Tax Act (threshold limit)
Along with either of the forms mentioned above, the tax auditor shall also furnish Form 3CD which forms part of the audit report.
What is the due date for furnishing Tax Audit Report?
> 30th September 2022 – For taxpayers eligible for Tax Audit u/s. 44AB
> 31ST October 2022 – For taxpayers covered with Transfer Pricing Transactions u/s. 92E
PRESUMPTIVE TAXATION APPLICABILITY FOR FY 2021-22 (AY 2022-23)
Sec 44AD – Presumptive Taxation for Persons carrying on eligible business
The features of presumptive taxation u/s.44AD are:
- Any resident individual/HUF/Firm (LLP not covered) who is carrying on eligible business whose total T/O / Gross receipts in the FY does not exceed 2 Crores and has not claimed deductions u/s. 10A,10AA,10B,10BA or deduction in respect of certain incomes under Chapter VIA
- Eligible business means any business other than the business of
a. Plying, leasing or hiring goods carriages covered u/s. 44AE
b. Agency
c. Commission or Brokerage
- The main advantage of presumptive taxation is that neither maintenance of accounts is required nor audit of accounting records.
Therefore, an eligible assessee who wishes to opt for presumptive taxation as mentioned above shall declare
> Net income at 8 % of the total turnover or gross receipts
> Net income at 6 % of total T/O or gross receipts in case of digital receipts
> Any deductions from Section 30 to 38 deemed to have been already provided for
> No deduction for depreciation allowed
When an assessee declares profits on presumptive basis it shall follow for atleast 5 consecutive years. If assessee fails to do so presumptive benefits will be lost & assessee cannot opt for presumptive taxation for subsequent 5 years. If assessee fails to declare profits on presumptive basis for any of the five succeeding assessment years & whose total income exceeds the basic exemption limit it shall be required to maintain accounts & get them audited u/s. 44AB of the Act.
Sec 44ADA – Presumptive Taxation for Persons carrying on eligible profession
The features of presumptive taxation u/s.44ADA are:
- Any resident individual/HUF/Firm (LLP not covered) who is engaged in profession referred u/s. 44AA and whose total Gross receipts in the FY does not exceed 50 Lakhs.
- The main advantage of presumptive taxation is that neither maintenance of accounts is required nor audit of accounting records.
Therefore, an eligible assessee who wishes to opt for presumptive taxation as mentioned above shall declare
> Net income at 50 % of the gross receipts
> Any deductions from Section 30 to 38 deemed to have been already provided for
> No deduction for depreciation allowed
When an assessee opts to pay tax under Sec 44ADA but claims profits & gains from profession less than 50 % of gross receipts & whose total income exceeds the basic exemption limit it shall be required to maintain accounts & get them audited u/s. 44AB of the Act.
Sec 44AE – Presumptive Taxation for Persons carrying on business of plying, hiring or leasing goods carriages
- Any person carrying on the business of plying, hiring or leasing goods carriage & does not own more than 10 goods vehicles at any time during the previous year can opt for this scheme
- The main advantage of presumptive taxation is that neither maintenance of accounts is required nor audit of accounting records.
- Net income shall be calculated in case of
i. Heavy goods vehicle – Rs. 1,000 per ton of gross vehicles weight for every month or part of month owned by taxpayer
ii. Other goods vehicle – Rs.7,500 per month or part of month owned by taxpayer
- Part of month would be considered as full month
- Heavy goods vehicle means any goods carriage whose gross vehicle weight exceeds 12,000 Kgs. (12 tonnes)
- Any deductions from Section 30 to 38 deemed to have been already provided for
- No deduction for depreciation allowed
- In case of partnership firm deduction of remuneration & interest to its partners u/s. 40(b) is allowed.
When an assessee opts to pay tax under Sec 44AE but declares lower income than prescribed under presumptive scheme it shall be required to maintain accounts & get them audited u/s. 44AB of the Act.
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