21 August 2014
Section 44AD(5) - Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.
Further, Rule 6G reads as follows : 6G. (1) The report of audit of the accounts of a person required to be furnished under section 44AB shall,—
(a) in the case of a person who carries on business or profession and who is required by or under any other law to get his accounts audited, be in Form No. 3CA;
(b) in the case of a person who carries on business or profession, but not being a person referred to in clause (a), be in Form No. 3CB.
(2) The particulars which are required to be furnished under section 44AB shall be in Form No. 3CD.]
Hence Assesse declaring lower profit than prescribed under 44AD is required to get the accounts audited and file the report with income tax in Form 3CA/3CB and 3CD.
21 August 2014
Umesh Bhai...ICAI language doesn't go supersede Income-tax Act. The section 44AD itself says that audit report is to be done under 44AB. The audit is never done under 44AD.
What ICAI clarified was that the audits conducted on account of 44AD(5) wont be counted against the sanctioned limits of audit per chartered accountant. So please don't confuse it to mean that audit report itself can be submitted under section 44AD.
21 August 2014
who is asking to follow me. Follow what is right. Try submitting a audit report under 44AD to income-tax department. See if the ITR (audit report section) gives you that option...
21 August 2014
What ICAI clarified was that the audits conducted on account of 44AD(5) wont be counted against the sanctioned limits of audit per chartered accountant. So please don't confuse it to mean that audit report itself can be submitted under section 44AD.
21 August 2014
What ICAI clarified was that the audits conducted on account of 44AD(5) wont be counted against the sanctioned limits of audit per chartered accountant. So please don't confuse it to mean that audit report itself can be submitted under section 44AD.
21 August 2014
Umesh Bhai, as I said ICAI gave a clarification that an audit conducted because of 44AD(5) conditions is not to be considered against sanctioned limits. It is not a legal opinion by ICAI. Audits are not conducted under 44ad or 44AE etc etc.
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