Tax Audit under Section 44AB for AY 19-20

Tax Audit under Section 44AB for AY 19-20

Section 44AB gives the provisions relating to the class of taxpayers who are required to get their accounts audited from a chartered accountant. The audit under section 44AB aims to ascertain the compliance of various provisions of the Income-tax Law and the fulfillment of other requirements of the Income-tax Law. The audit conducted by the chartered accountant of the accounts of the taxpayer in pursuance of the requirement of section 44AB is called tax audit.

In Which Form Tax Audit Reports are required to be obtained

Tax Audit Reports are required to be obtained under section 44AB is Form No. 3CA or 3CB as the case maybe and the prescribed particulars are to be reported in Form No. 3CD.

Difference between form 3CA & 3CB is given below:

Category of Taxpayer	Form for Audit Report	Annexure to Audit Report
If books of account of assessee is required to be audited under any other law	Form 3CA	Form 3CD
In any other case	Form 3CB	Form 3CD

Who is compulsorily required to get his accounts audited or who is covered by tax audit

Bussiness/Profession	Category of Tax Payer	When is Tax Audit Required
Bussiness	Any	Gross receipts in bussiness for the relevant previous year exceed Rs. 1 Cr
Profession	Any	Gross receipts in profession for the relevant previous year exceed Rs. 50 lakhs
Bussiness	An assessee who is eligible for presumptive tax u/s 44AD	If income of assessee exceeds the maximum exemption limit and he has opted for the scheme in any of the last 5 previous years but does not opt for the same in current year.
Profession	An assessee who is eligible for presumptive tax u/s 44ADA	Taxpayer claims that his profits from profession are lower than the profits computed under Section 44ADA and total income exceeds the maximum exemption limit
Bussiness	An assessee who is eligible for presumptive tax u/s 44AE	Taxpayer claims that his profits from bussiness are lower than the profits computed under Section 44AE
Bussiness	An assessee who is eligible for presumptive tax u/s 44BB Non-resident assessee engaged in exploration of mineral oil is covered under this section	Taxpayer claims that his profits from bussiness are lower than the profits computed under Section 44BB
Bussiness	An assessee who is eligible for presumptive tax u/s 44BBB Foreign Company engaged in civil construction is covered under this section	Taxpayer claims that his profits from bussiness are lower than the profits computed under Section 44BBB

What is due date of filing Tax Audit Reports

Due date of filing Income Tax Audit Report form 3CA-3CD or Form 3CB-3CD is 30th September of Assessment year for the relevant Previous year.

How to file the Tax Audit Report with Income Tax Department

The audit report shall be filed electronically by the Chartered Accountant to the Income-tax Department. The report shall be uploaded directly by the tax auditor at www.incometaxindiaefiling.gov.in. However, to furnish the report, the assessee has to authorize and appoint the Chartered Accountant from his e-filing account.

What Documents are Required to be submitted along with TAR

Documents Required to be submitted along with Tax Audit Report are :

(a) Balance Sheet

(b) Profit & Loss Account/Income and Expenditure Statement

(c) Cost Audit Report, if applicable

(d) Excise Audit Report, if applicable

How May Tax Audit Reports a CA can Sign

60 Tax Audit Reports can be signed by a CA in Practice.

If there are 10 partners in a firm of Chartered Accountants, then how many tax audits reports can each partner sign in a financial year

If there are 10 partners in a firm of Chartered Accountants in practice, then all the partners of the firm can collectively sign 600 tax audit reports. This maximum limit of 600 tax audit assignments may be distributed between the partners in any manner whatsoever. For instance, 1 partner can individually sign 600 tax audit reports in case remaining 9 partners are not signing any tax audit report.

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