Applicability of Tax Audit provisions for FY 17-18 | AY 18-19

Applicability of Tax Audit provisions for FY 17-18 | AY 18-19 : Section 44ABgives the provisions relating to the class of taxpayers who are

CA Deepak Gupta

Jul 29, 2018

Last update on Jul 29, 2018

Applicability of Tax Audit provisions for FY 17-18 | AY 18-19 : Section 44ABgives the provisions relating to the class of taxpayers who are required to get their accounts audited from a chartered accountant.As persection 44AB, following persons are compulsorily required to get their accounts audited : CBDT Issued Revised Form 3CA 3CB AND 3CD For FY 2017-18/ AY 2018-19

Applicability of Tax Audit provisions for FY 17-18 | AY 18-19

A person carrying on business, if his total sales, turnover or gross receipts (as the case may be) in business for the year exceed or exceeds Rs. 1 crore. This provision is not applicable to the person, who opts for presumptive taxation scheme undersection 44AD and his total sales or turnover does not excceeds Rs. 2 crores.
A person carrying on profession, if his gross receipts in profession for the year exceed Rs. 50lakhs.
A person who is eligible to opt for the presumptive taxation scheme ofsection 44ADbut claims the profits or gains for such business to be lower than the profits and gains computed as per the presumptive taxation scheme ofsection 44ADand his income exceeds the amount which is not chargeable to tax.
A person who is eligible to opt for the presumptive taxation scheme ofsection 44ADAbut he claims the profits or gains for such profession to be lower than the profit and gains computed as per the presumptive taxation scheme and his income exceeds the amount which is not chargeable to tax.
A person who is eligible to opt for the presumptive taxation scheme ofsections 44AEbut he claims the profits or gains for such business to be lower than the profits and gains computed as per the presumptive taxation scheme ofsections 44AE.
A person who is eligible to opt for the taxation scheme prescribed undersection 44BBorsection 44BBB but he claims the profits or gains for such business to be lower than the profits and gains computed as per the taxation scheme of these sections.

A person covered bysection 44ABshould get his accounts audited and should obtain the audit report on or before the due date of filing of the return of income, i.e., on or before 30th September of the relevant assessment year, e.g., Tax audit report for the financial year 2017-18 corresponding to the assessment year 2018-19 should be obtained on or before 30th September, 2018.In case of a taxpayer who is required to furnish a report in Form No. 3CEB undersection 92 in respect of any international transaction or specified domestic transaction, the due date of filing the return of income is 30th November of the relevant assessment year. Penalty for non compliance of Tax Audit Provisions : According tosection 271B, if any person who is required to comply withsection 44ABfails to get his accounts audited in respect of any year or years as required undersection 44AB, the Assessing Officer may impose a penalty. The penalty shall be lower of the following amounts:

(a) 0.5% of the total sales, turnover or gross receipts, as the case may be, in business, or of the gross receipts in profession, in such year or years.

(b) Rs. 1,50,000 However, according tosection 273B, no penalty shall be imposed if reasonable cause for such failure is proved.

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CA Deepak Gupta

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CA Deepak Gupta,is Co-founder of Studycafe. He is Microsoft Office Specialist and Corporate Trainer of AI Tools, Microsoft Excel. He is Finance Influencer having more than 250K followers on Social Media. CA Deepak Gupta, is Having more than 14 plus years of experience, and he has Worked with best brands Like, Hero, Wipro, Ericsson before Starting Studycafe. He has Trained more than 20000 Persons in Microsoft Excel, PowerPoint, Power BI, Google Sheet, Google Forms and Other Tools.