income tax audit purposes, an individual with business or professional income is required to maintain several documents. The list of documents includes books of accounts, cash books, ledgers, journals, etc.
Further, all these documents have to be maintained in a specific format and as per prescribed principles.
“The government mandates income tax audit for high-earning businessmen and professionals to ensure accurate reporting, prevent tax evasion, and maintain fairness in revenue collection. Audits also help scrutinize complex financial transactions and enhance overall tax compliance,” said Naveen Wadhwa, VP, Taxmann, a Delhi-based company that publishes tax books.
The list of documents (mentioned below) which are required to be maintained for income tax audit is the same for all those who are required to conduct an income tax audit. However, for specified professions (legal, engineering, medical, etc.), certain additional documents are also required to be maintained. This is over and above all the documents mentioned below.
According to Dr. Suresh Surana, founder, RSM India, a tax and business consulting group, some of the important documents that must be maintained (by an individual) for income tax audit purposes include the following:
When is the last date to submit an income tax audit report?