MANAGEMENT

Detailed explanation-1: -A tax audit is the process of verification and inspection of the accounts of a taxpayer to confirm their adherence to the provisions of the Income Tax law. Section 44AB of the Income Tax Act, 1961 deals with the Audit of the Accounts of a certain category of persons carrying on a business or engaged in a profession.

Detailed explanation-2: -In this sense, his canons of taxation are ‘classical’ in sense, four canons of taxation are: (i) Canon of equality or equity (ii) Canon of certainty (iii) Canon of economy (iv) Canon of convenience.

Detailed explanation-3: -Taxation Principles are guidelines that help lawmakers and governing bodies formulate strategies and plan their execution to ensure a robust tax structure to increase revenues and bring social and economic equality to its citizens.

Detailed explanation-4: -Manusmriti on Taxation According to Manusmriti, there was a well planned taxation system in which traders and artisans had to pay 1/5th of their profits in silver and gold, while the agriculturists were to pay 1/6th, 1/8th and 1/10th of their produce depending upon their circumstances.