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Audit u/s 44ad

CA SONIYA AGARWAL (self practice) (3005 Points)

10 December 2014

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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14 Replies

AMIT (bus) (444 Points)
Replied 10 December 2014

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

CA RAHUL AGRAWAL (Assistant Manager-Service Tax) (1733 Points)
Replied 10 December 2014

Yes it is counted and presesntly the limit has been increased to 60 by ICAI.

For Reference:- Section 44AB(d)

1 Like

CA Satyakam (Chartered Accountant) (80 Points)
Replied 10 December 2014

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

Arif Ali (Apt Co Advisory) (1230 Points)
Replied 10 December 2014

Basically audit is done under section 44AB(d) here. so it will be counted in limit of 60.

Rajagopalakrishnan R (PARTNER) (1417 Points)
Replied 10 December 2014

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.

CA abhishek jain (accounting auditing and taxation) (33 Points)
Replied 10 December 2014

audit u/s 44ad is not considered in 60 limit

CA Ronak Garodia (Qualified Chartered Accountant) (125 Points)
Replied 10 December 2014

It is not counted ...

(Guest)

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”.

Deepak Kumar Sancheti (CA) (124 Points)
Replied 11 December 2014

first of all limit of tax audit 60...and yes audit u/s 44ad will be counted

CA Ashish BHardwaj (Proprietor) (31 Points)
Replied 11 December 2014

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

abhishek keshri (self employed) (22 Points)
Replied 11 December 2014

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.

vinod (partner) (39 Points)
Replied 11 December 2014

It is not counted for limit of 60.

CA Dinesh Shah (Senior Personnel) (203 Points)
Replied 11 December 2014

Different members different views it is best to refer Icai gn in this regard. Controversy will be set to rest

CA Ashish BHardwaj (Proprietor) (31 Points)
Replied 11 December 2014

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