Audit u/s 44ad is count in 45 audit given by ca act?

Save Share

This query is : Resolved

CA. Afjal Y Hamirani (Querist)

01 March 2012 Hello sir/Madam,

i was very much confuse that if individual have his income below 8% than he is subject to audit under section 44ad so this audit will count in basic no. of audit given by ca act.(i.e.45 per individual)

Thank You.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

01 March 2012 Such Type of audit not consider for the purpose of limit of no of audits it is clarified by the ICAI.
OM SAI SRI SAI JAI JAI SAI

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

01 March 2012 Clarification for reckoning the “specified number of tax audit assignments” conducted under
section 44AB of the Income-tax Act, 1961.- (13-12-2011)
Various statutes prevailing in India like DVAT,2004 requires the assessee to furnish an audit report in a
form duly signed and verified by such particulars as may be prescribed under section 44AB of the
Income-tax Act, 1961 i.e. Form 3CB/3CD. This had lead to the doubts as to whether such audits would
be included in the ceiling of “specified number of tax audit assignments”.
Considering the same, the Council at its 311th meeting held on 8thand 9th November, 2011 clarified
that audit prescribed under any statute which requires the audit report in the form as prescribed
under section 44AB of the Income-tax Act, shall not be considered for the purpose of reckoning the
specified number of tax audit assignments if the turnover of the auditee is below the turnover limit
specified in section 44AB of the Income-tax Act, 1961. For instance audit under section 44AD, audit
under DVAT, 2004 (for turnover between 40 to 60 Lakhs) etc. will not be considered for inclusion in
the present limit of 45 audits.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now