Quick Summary
The Disciplinary Committee of ICAI has imposed penalty of Rs.5 Lakh and removed Chartered Accountant from Register of members for a period of 03 (Three) Months for professional misconduct on conducting tax audit under section 44AB of Income Tax Act, 1961 beyond the limit prescribed by the Institute
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited News Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
A penalty of £5 lakh has been imposed, and the Chartered Accountant has been removed from the Register of members for a period of three months.
The penalty was imposed for professional misconduct, specifically for exceeding the prescribed limit of tax audits under Section 44AB of the Income Tax Act during specific financial years.
Section 44AB of the Income Tax Act, 1961, mandates tax audits for certain businesses and professions.
For a Chartered Accountant in practice or a proprietary firm, the specified limit is 45 tax audit assignments per financial year. For a firm of Chartered Accountants, it's 45 assignments per partner.
The Council of the Institute decided to put a ceiling of thirty (30) tax audit assignments effective from 1st April 1989. This was later increased to 45 in 2007 and further to 60 in 2014.
A Chartered Accountant in practice is free to accept audits under Sections 44AD and 44AE of the Income-tax Act, 1961, without any limit.
CAclubindia
