IS AUDIT DONE U/S 44AD TO SHOW PROFIT LESS THAN 8% TAKEN FOR COUNTING THE LIMIT OF TAX AUDIT PER AUDITOR WHICH AT PRESENT IS 45 . PLZ REPLY ON URGENT BASIS
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Audit u/s 44ad
Replies (14)
Hi there,
Tax Audit under 44AB is done when assessee show NP of Less than 8% or If his Turnover exceeds Rs. 1 crore.
No Audit is done under Section 44AD
Yes it is counted and presesntly the limit has been increased to 60 by ICAI.
For Reference:- Section 44AB(d)
Yes.if the assessee shows income less than 8 % and his total income exceeds maximum amount chargeabl to tax that is 200000 than audit is to be done
Basically audit is done under section 44AB(d) here. so it will be counted in limit of 60.
The Council of ICAI has clarified that for counting the limit of 45 (now 60) audit under 44AB r/w 44AD will NOT be considered.
audit u/s 44ad is not considered in 60 limit
It is not counted ...
Note that limit has been increased from 45 to 60 and the said limit will be effective for the audits conducted during the financial year 2014-15 and onwards.
Also, audits conducted under Section 44AD, 44AE and 44AF of the Income Tax Act, 1961 shall not be taken into account for the purpose of reckoning the “specified number of tax audit assignments”.
first of all limit of tax audit 60...and yes audit u/s 44ad will be counted
as per section 44ad is income shows less thn so audit is necessary as section 44ab.. means here word AS is important means only like 44ab not 44 ab... so not count ed
Yes if the NP is less than 8% ,assessee needs to
Be audited u/s 44 AD I.e tax audit required and this audit will be counted for limit of 60.
It is not counted for limit of 60.
Different members different views it is best to refer Icai gn in this regard. Controversy will be set to rest
As per section 44ad if income is less than 8 percent so audit will conduct as per section 44ab means only as per not 44ab.
And limit is applicable only to 44ad... so not included
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