Dear All,
As per ICAI, limit for Tax Audit u/s 44AB by an individual CA is 45. However, it excludes the Audit u/s 44AD.
Now, when an assessee shows his income less than 8% of his turnover,then he is liable to get his accounts audited u/s 44AB. So, ultimately, 44AD becomes 44AB and as mentioned above, limit for 44AB is 45 Audits. So, how 44AD is excluded?
E.g. Suppose, a CA has signed on all the 45 Tax Audit Reports. Now, an assessee came to him whose turnover is less than 60Lakhs, and his Net profit is also less than 8 %. So, he cannot avail the benefit of 44AD. So the CA replied him, that he is required to get his books of accounts audited. But the limit of 45 Tax Audits is already fulfilled, then, how can that CA audit his books of accounts?
Please Clarify.
Thanks & Regards.
CAclubindia
