Tax Audit is conducted as per the provisions of Section 44AB of the Income Tax Act, which gets applicable on a class of taxpayers. The purpose of tax audited is to ascertain whether the compliance of various provisions of the Income Tax Act and the rules made thereunder has been compiled by the assessee or not. The tax audit can be conducted by a Chartered Accountant in whole time practice. Following are the conditions which are necessarily required to be fulfilled.
Must be a person under Income Tax Act
Must carry on business or profession
Must maintain books of account
Object to earn profit or gain
Income is taxable or allowable the tax