Tax audit query

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RAKESH SIKHWAL

GST PRACTITIONER

30 Points Posted on 07 September 2018

Dear CCI Members,

Please resolve my query with regards to Tax Audit Limit

As we are doing audit of Parties which have Profit less than 8% having turnover less than 1 cr.

And parties having turnover between 1 cr.to 2 cr. and showing profit Less Than 8% than both of this audits will we counted under limit of 60 parties audit under 44AB limit or 44AD.

Thanks & Regards

Replies (2)

Sanket

!..Live to Give..!

7573 Points Posted on 07 September 2018

Section 44AB of the Income-tax Act (‘the Act’) makes it obligatory for every person carrying on business to get his accounts of any previous year audited if his total sales, turnover or gross receipts exceed one crore rupees.

However, if an eligible person opts for presumptive taxation scheme as per section 44AD(1) of the Act, he shall not be required to get his accounts audited if the total turnover or gross receipts of the relevant previous year does not exceed two crore rupees.

The higher threshold for non-audit of accounts has been given only to assessees opting for presumptive taxation scheme under section 44AD

Rohit Tibrewal

Student

1919 Points Posted on 08 September 2018

On 23 Aug. 2018 also, the ICAI has amended the provisions/ regulations relating to ‘specified number of tax audits’ (ceiling limit) that can be conducted by a practicing CA/ Firm, according to which tax audits conducted under Section 44AD, 44ADA and 44AE of the Income-tax Act, 1961 (Presumptive Taxation) shall not be taken into account for the purpose of reckoning the “specified number of tax audit assignments”.