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Section 10 exempted entities

Upesh (Chief Compliance Officer) (21 Points)

17 July 2018

Is Tax Audit mandatory for entities which are exempted from under section 10?

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Deepak Gupta (CA Student) (15927 Points)
Replied 17 July 2018

Section 44AB makes it mandatory for every person carrying on any business or profession to get his accounts audited where conditions laid down in the section are satisfied.

Neither section 44AB nor any other provisions of the Act stipulate exemption from the compulsory tax audit to any person whose income is exempt from tax.

So, such institutions/associations of persons will have to get their accounts audited and to furnish such audit report for purposes of section 44AB if their turnover in business exceeds the prescribed limit.