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Tax Audit for the Asst year 2019-20

29 September 2019

one of the Private Limited company engaged in Business has Turnover is less than one Crore but incurred a Net Loss of Rs 40 Lakhs Whether to file Tax Audit Reports I.e. Form 3CA and Form 3CD for the Asst year 2019-20 please clarify

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5 Replies

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 29 September 2019

As per sec 44AB of IT act Tax Audit not applicable.
In case the Company will conduct audit with sec 44AB then Tax Audit report ( Form 3CA, CD is required).

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Kapadia Pravin (17264 Points)
Replied 29 September 2019

Since turnover is below 44AB limit of 1 crore, tax audit is not necessary.

Net loss of Rs 40 Lakhs is not relevant factor for audit eligibility.

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 29 September 2019

As per the above query (Pvt Ltd) with sec 44AB Form 3CA / CB and 3CD is must...

Kapadia Pravin (17264 Points)
Replied 30 September 2019

But why anyone will spend on tax audit 44AB when it's not required in view of turnover falling below 44AB limit.

Only statutory audit under Companies Act is obviously mandatory.

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 30 September 2019

👉👉👉👉

Tax Audit under Section 44AB

The audited accounts must be reported by a Chartered Accountant in the prescribed forms. The audit report should be inclusive of the findings, observations; etc.

Audit report in respect of audit conducted under Section 44AB must be prepared in Form No. 3CB and the particulars of audit must be reported in Form 3CD.

Tax audit reports for those persons who are necessitated to get their accounts audited by or under any other law must be prepared in Form 3CA/3CB and the particulars for the same must be reported in Form 3CD.

The tax audit report must be electronically filed by the chartered accountant, after which the taxpayer is required to approve the submitted reports using the e-filing account.