Are you aware of what are the different types of Tax Audit in India? How you can learn about the Process of Tax Audit in India? Well in this article you will get all the Information you need.
Types of Tax Audits in India:-
There are three main types of income tax audits in India: form 3ca, form 3cd and return filing.
Form 3ca is the standard form for all income tax returns filed by corporations and trusts. It is used to declare taxable income and declared dividends.
There is no GST presence yet so Form 3ca will still be used for this purpose. The declaration can be made in detail or as a general declaration on the basis of all sources of income.
However, there is no need to make any changes to your return if you have already filed a Form 3ca. Form 3cd is used for individual income tax returns filed by individuals.
It declarations taxable income and declared dividend like Form 3ca, but it also includes computation of SIN (social insurance number).
The declaration can be made in detail or as a general declaration on the basis of all sources of income including source of investment, savings account or regular bank deposits. The individual has to furnish PAN card details
Why Form 3ca and 3cd are Crucial in Tax Audit?
- Forms 3ca and 3cd are two important tax audit forms in India. They are used to record and acknowledged the transactions done during the course of tax audits.
- Although Form 3ca and 3cd are two Pillars Indian tax forms. Form 3ca is used for Business Tax Returns and Form 3cd is used for income Tax Returns.
- The forms 3ca and 3cd are used in Tax Calculation in India to document income and expenses.
So there are three main types of income tax assessment in India.
Who is required to do a Tax Audit in India?
Tax audits are typically carried out by firms that have operations in India. The main requirements for doing a tax audit in India include having an office in the country, being registered with the Registrar of Companies, and having a valid license from the government.
A Tax Audit in India is typically carried out by a professional accountant. The purpose of a Tax Audit is to review and audit the financial statements and other documents of a company in order to detect tax evasion and prepare the company for potential legal action.
Tax audits are also known as financial audits. They are an important part of the Corporate Tax System in India. A company must file a return with the income tax authorities and pay the taxes that have been levied on its profits.
In order to do a full audit, a team of professionals including tax officers, accountants and auditors is necessary.