TAX Audit

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Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2010 is TAX AUDIT IS APPLICABLE ON RESIDENT WELFARE ASSOCIATIONS ,(FILING RETURNS AS AOP)?

CA Chitresh Gupta

CA Chitresh Gupta (Expert)
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21 June 2010 As per Section 44AB, every person carrying on business or profession shall gets its accounts audited if his turnover exceeds the specified limit.

In my view the RWA does not carry on any business or profession. It is a mutual association created for the benefits of members. It takes contribution from members and utilises for the common facilities. Hence, in our view, there is no requirement of Tax audit in the referred cases.

Regards

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Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2010 Thanks for the information,also as if Tax Audit is not applicable so the last date for filling of its return will be July 31st ?even in case it get its account audited under other law or under its own bye laws.

CA Chitresh Gupta

CA Chitresh Gupta (Expert)
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22 June 2010 Explanation 2 to section 139(1) prescribes the due date filing return of Income as follows:

(a) where the assessee is—

(i) a company; or

(ii) a person (other than a company) whose accounts are required to be audited under this Act or under any other law for the time being in force; or

(iii) a working partner of a firm whose accounts are required to be audited under this Act or under any other law for the time being in force,

the 30th day of September of the assessment year;

(c) in the case of any other assessee, the 31st day of July of the assessment year.

regards

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