We all are aware that we will have to go through a tax audit if our turnover exceeds the prescribed number as prescribed by statute i.e. Income Tax Act 1961.
However, have you ever wondered why there is a requirement for tax audits? Or, what are the objectives of tax audits? In order to help you out, in this article, we will tell you all about the objectives of tax audits.
It is conducted to report the requirements of Forms - 3CA/3CB and 3CD, which the tax auditor has to present in front of the tax authority.
Proper maintenance of the book of accounts and other similar records is another such objective of tax audits.
It is also done to get a proper record about the income of the taxpayers as well as their tax deductions.
Tax audits are conducted to facilitate the administration of tax laws by presenting the accounts properly in front of authorities.
Another objective of tax audits is saving verification time. Tax Audits help save time that is taken during routine verification, which is an even more tedious procedure than auditing.
Well, that was all about the objectives of tax audits. We hope that you found this article to be helpful.
If you need any help regarding tax audits in Bangalore, then you can get in touch with some of the best Chartered Accountants in Bangalore.
You can also check out our article on tax audits to know more on the subject.