TAX AUDIT AND STATU.AUDIT

Statutory Audit is an audit that is to be conducted by every company registered under the Companies Act, 1956 or any such Act prior to that. There is no income or turnover criteria for this. Even a company with a zero turnover has to get its books of accounts audited.

Income Tax Audit is an audit that is to be conducted under the provisions of Income Tax Act, 1961. Sec. 44AB requires every assessee to get its books of accounts audited where

- the sales, turnover or gross receipts from business exceed Rs. 60 lakhs in the previous year.

- the gross receipts from profession exceed Rs. 15 lakh.

There are also some criteria of presumptive income under which the assessee may be required to conduct an audit u/s 44 AB.

Further, the companies whose turnover exceed the above mentioned criteria have to conduct Tax Audit in addition to the Statutory Audit. 

I hope you are now clear with the difference, from this explanation.

- CA. Amol G. Kabra