Compulsory Audit required in following 3 Cases
(1) If Gross turnover of business > 2 crores in Financial Year (then compulsory audit required. (For Company LLP, it is 1 crore)
(2) In case of profession limit is >5000000 for Compulsory Audit
(3) If the assesses 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 compulsorily 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
