Compulsory Audit required in following 3 Cases

(1) If Gross turnover of business > 1 crores   in Financial Year  (then compulsory audit required.

(2) In case of profession limit is >2500000 for Compulsory Audit

(3) If the assessee claims profit less than the profit deemed under section 44AD /44AE /44BB/44BBB then also compulsory audit required 

For example:- In Section 44AD, if a person claims that his income less than 8% turnover,then he has to compulsarily maintain accounts and get them audited

 

Section 44AB Audit is called Tax Audit 

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Accounts Already Audited

(1) If accounts are audited under any other law then section 44AB audit not required but Audit report in specified form to be submitted .

Example:- For Companies,Accounts Audited Under Companies Act called Statutory Audit, hence tax audit under Section 44AB not required to be conducted separately

However Certain reports to be furnished in Form 3CA+ Annexure in Form 3CD)

 

(2) If accounts are audited under any other section of income tax then separate tax audit under Section 44AB required

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AUDIT REPORT FORMS

Audited Under Any Other Law

Form 3CA+3CD 

(Main Audit report is in Form 3CA and Annexure in Form 3CD)

 Example:- Company

 

Audited Under Income Tax

Form 3CB+3CD

(Main Audit report is in Form 3CB and Annexure in Form 3CD)

 Example:-Proprietorship/Partnership

 

SUMMARY

Section 44AB Compulsory Tax Audit Requirement - Compulsory Maintenance of Books and Audit

 

 

  1. Income Tax
  2. PGBP Income
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides GST Training in Delhi. Register now.