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Tax audit limit for ay 2014-15

RAJ KUMAR (FINANCE MANAGER) (1393 Points)

11 September 2014

HELLO FRIENDS, CAN ANYBODY TELL WHAT IS THE TAX AUDIT LIMIT FOR AY 2014-15.

IS IT 60 TAX AUDITS FOR AY 2014-15 OR IT IS FROM AY 2015-16.

AND SEC 44AD AUDITS ARE NOT COUNTED IN THE ABOVE LIMIT.

PLS. REPLY ME.

THANKS.

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4 Replies

Pulkit Gupta (CA in Practice) (172 Points)
Replied 11 September 2014

In view of the New Guidelines on Tax audit :-

A member of the Institute in practice, shall be deemed to be guilty of professional misconduct if, he accepts more than 60 tax audit assignments relating to an assessment year or such other limit as may be prescribed by ICAI from time to time under section 44AB,

As per the Council Guidelines No.1-CA(7)/02/2008, dated 8th August, 2008, audit of books of account of persons carrying on businesses covered by sections 44AD and 44AE, is not included in the aforesaid limit. The auditor is advised to maintain the details of the audits conducted by virtue of the provisions of section 44AD and 44AE separately.

Download new guidance note on form 3cd and refer para 9.24 & 9.25

https://taxhow.in/2014/09/new-guidance-note-on-tax-audit-report-us-44ab/

RAJ KUMAR (FINANCE MANAGER) (1393 Points)
Replied 13 September 2014

PLS. EXPLAIN I AM NOT CLEAR IS 60 AUDITS FOR AY 2014-15.

DrSANGITA PHD MBA(usa)CACSCWA (President Finance & Taxation) (405 Points)
Replied 16 September 2014

Tax Audit Limit Increased From 45 to 60 for audits conducted during the financial year 2014-15 and onwards. - (11-02-2014)

In view of the enhancement of professional competence of members to perform quality services in an IT-enabled environment, the Council of the Institute at its 331st meeting held from 10th to 12th February, 2014 has decided to increase the "specified number of tax audit assignments" for practicing Chartered Accountants, as an individual or as a partner in a firm , from 45 to 60. The said limit will be effective for the audits conducted during the financial year 2014-15 and onwards. Accordingly, the Council Guidelines No.1-CA(7)/02/2008, dated 8th August,2008 stands amended from 1.4.2014 as under:-

In the Council General Guidelines, 2008, the Council Guidelines No.1-CA(7)/02/2008, dated 8th August,2008, in Chapter VI "Tax Audit assignments under Section 44AB of the Income-tax Act, 1961 ", in Explanation given in Para 6.1, in sub-para(a) and sub-para(b), the figure "45" be substituted with the figure "60".

DrSANGITA PHD MBA(usa)CACSCWA (President Finance & Taxation) (405 Points)
Replied 16 September 2014

The Sentence (highlighted above) Conducted during the FY 2014 - 15 can be Interpreted in Both ways.

1 For the FY 2014 - 15 or

2 Conducted during FY 2014 - 15 means also that if I do an Audit in September 2014 & Issue the Audit Report on 16th September 2014 than I can say that I have conducted the Audit in the FY 2014 - 15. ( even that it be for any previous FY of the Client ) I can say that I have duly Obeyed the Wordings of the Circular of ICAI. of Conducting the Audit in the FY 2014 - 15.