Audit of accounts under income tax

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This query is : Resolved

Umar Basha (Querist)

24 June 2009 Whether the accounts filed in case of a company with the tax authorities needs to be audited ? Given that the turnover of the company does not exceed INR 40 Lakhs , the limit specified u/s.44AB

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)

24 June 2009 companies accounts needs to be audited under companies act irrespective of amount of turnover, however for applicability of audit under u/s. 44AB turnover must exceed 40 lacs

Sanjeev Jain

Sanjeev Jain (Expert)

24 June 2009 Yes Mr. Sanjeev is correctly said audit of two acts are distinct to each other you can not take a stand that applicability of one act impose the applicability of second act.
Tax Audit will be carried out if the turnover of the co. exceeds Rs.40 lacs while in case of professinal receipt Rs.10 lacs.

Umar Basha

Umar Basha (Querist)

24 June 2009 If the company is incorporated in Jan 2008 and the company takes the choice of filing accounts for an extended period of 15 months , i.e., 31 March 2009.

The company has two tax period ie., 31 March 2008 and 31 March 2009. Further, there is no turnover or the turnover does not cross the limit of INR 40 Lakhs. Then how will be the situation.

Company is required to get their accounts audited only once for statutory purpose under companies act and that will be for 31 March 2009.

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