Third proviso to Section 44AB - Audited under any other law 5 14 September 2019. Section 44AB of the Income-tax Act, 1961 contains the provisions for the tax audit of an entity. © Copyright 2018, all rights reserved with Expertspanel.in. [Refer point 5 below for further discussion on Section 44AD (4) & (5)] 5. A.Y 2017-18 and AY 2018-19. Let us consider few examples so as to better understand the provisions, Turnover of the assessee is Rs 85 Lakhs, Profit from business is Rs 5.5 Lakhs and Assessee has not opted for presumptive taxation in any of the five preceding previous years, i) Applicability of provisions of sec 44AB(a), In the given case the turnover of the assessee is less than Rs 1 Cr hence the assessee shall not be liable for tax audit u/s 44AB(a), ii)Applicability of provisions of sec 44AB(e), In the given case the assessee has not declared profits as per presumptive taxation scheme in any of the five preceding years, hence he shall not be liable for tax audit u/s 44AB(e) r.w.s 44AD(4), Turnover of the assessee is 1.5 Crs, Cash receipts/payments are Rs 15 Lakhs, Profit from business is Rs 7 Lakhs and Assessee has not opted for presumptive taxation in any of the five preceding previous years, i)Applicability of provisions of sec 44AB(a), In the given case the cash payment/receipts are greater than 5% of total payment/receipts hence the assessee shall be liable for tax audit u/s 44AB(a) as the turnover exceeds the limit of Rs 1 crore and the assessee has not declared profit in accordance with the provisions of sec 44AD. However it is pertinent to note that though Article 14 forbids class legislation; it is a trite law that it does not forbid reasonable classification of persons, objects and transactions by the Legislature for the purpose of achieving specific ends. Turnover : 1.05 Cr 821(E).—In exercise of the powers conferred by section 44AB read with section 295 of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Income-tax Act), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:— 1. Sec 145A (ii) as amended by Fin 2018 provides that the valuation of sales, purchases and inventory shall be adjusted to include the amount of taxes, duties or cess. Return of Income (Section 139 to 140A) Subsequently, in order to encourage banking transaction the Fin Act 2017 provided that in case of receipts through banking channels the amount of deemed profits shall be 6% instead of 8%. 23. In the given case the assessee has declared profits as per presumptive taxation scheme in any of the five preceding years and has not declared profits as per presumptive taxation for current year, hence the provisions of sec 44AD(4) shall apply and he shall be liable for tax audit u/s 44AB(e) r.w.s 44AD(4). (i) Clause 44AB(d) (ii) Clause 44AB(e) (iii) Third Proviso to Sec 44AB 2 Form3cdProfGain sPresum SectionNo Modified Section 44ADA added in dropdown. Sec 44AE provides for presumptive taxation in case of any assessee owning not more than 10 goods carriage at any time during the previous year and who is engaged in the business of plying, hiring or leasing such goods carriage. This provision shall come into effect from 1st April 2020 or Assessment Year 2020-21 itself. Pramod Jain, A short video on Due date on Filing of LLP Form 8 for FY 2019-20, PPT on Conversion into LLP and its Taxation by CA. Now does this rule of Block of 5 year break in AY 2019-20? Eligible assessee is defined to be an individual, HUF or a partnership firm other than LLP, who is a resident; and who has not claimed deduction under sections 10A, 10AA, 10B, 10BA or deduction under any provisions of Chapter VIA under the heading "C. – Deductions in respect of certain incomes” i.e. The provisions of sec 44AD apply only to the eligible assessee engaged in eligible business. Section 44AB of the Income-tax Act, 1961 contains the provisions for the tax audit of an entity. Hence, 2 nd Proviso to Section 44AB has become redundant on date. Thus, it creates apparent anomaly whereby greater compliance burden is placed on small taxpayers rather than large tax payers which is against the purpose and object of the sec 44AD of easing the compliance burden of small taxpayers. Before the amendment tax audit was applicable in every case where the assessee declared profit lower than the deemed profits as per presumptive tax scheme. THE INCOME TAX ACT,1961 THE SERVICE TAX ACT,1994 THE MVAT ACT,2002 THE CUSTOMS ACT, 1962. Dividend received by investors is exempt from tax – section 10(34) of IT Act However, Company distributing dividends is liable to dividend distribution tax @ 16.995%*( Sec 115 O of IT Act, 1961) There is a specific set of forms to be submitted for this. What constitute the “turn over” or “gross receipt” mentioned in the Section 44AB in the case of an Employees credit co-operative society engaged in the business of accepting deposits from members and provide loans to members? If yes then it would mean sec 44ada is a compulsory section? From the example 3 and example 4 it is observed that where the assessee has turnover less than Rs 2 Crores and declares profit less than 8%/6% tax audit is applicable, where as in case the assessee has turnover between 2 Crs to 5 Crs, no tax audit is applicable even if he has declared profits less than 6%/8%. AY 2017-18 Opted 44AD as Turnover was less then 1CR, since in AY 2019-20 it is out of section 44AD… Sec 44AD was amended by Fin Act 2016. Drawing the Conclusions: Under section 44AB of the Income-tax Act, 1961, it is obligatory for certain specified persons, carrying on business or profession to get their accounts audited by an ‘accountant’ and submit a copy of the ‘audit report’ in prescribed form (Form No. The Ld. No tax shall be deducted on any commission or brokerage payable by Bharat Sanchar Nigam Ltd. or Mahanagar Telephone Nigam Ltd. to their public call office franchisees (The third proviso to section 194H inserted w.e.f. Hence, 2 nd Proviso to Section 44AB has become redundant on date. 19.5 The proviso to Section 44AB only carves out an exception to those persons whose accounts are compulsorily audited under other laws in the country, like the Companies Act or the Co-operative Societies Act. Amounts deemed to be profits and gains under section 32AC or Third proviso to section 44AB:- Audited under any other law. Turnover of the assessee is 2.5 Crs, Cash receipts/payments are Rs 10 Lakhs, and Profit from business is Rs 8 Lakhs, In the given case the cash payment/receipts are less than 5% of total payment/receipts hence the assessee shall not be liable for tax audit u/s 44AB(a) as per the proviso to sec 44AB(a), Note: As the turnover of the assessee is greater than Rs 2 Crores the provisions of sec 44AD will not be applicable in this case. proviso to Sec 44AB,if  in a case where such person is required BY OR UNDER ANY OTHER LAW to get his accounts audited, it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date, Audit & Assurance and Accounting Standards, Corporate Matters/LLP, Income Tax, Insolvency and Bankruptcy Code, RBI / FEMA, International Taxation , Transfer Pricing, Benami Property Law, Bank / Insurance / Stock / Debtors Audit, Internal Audit, Code of Ethics, ICAI, Miscellaneous, Audit & Assurance and Accounting Standards, Corporate Matters/LLP, Goods and Services Tax (GST), Income Tax, Bank / Insurance / Stock / Debtors Audit, Code of Ethics, Corporate Matters/LLP, Insolvency and Bankruptcy Code, Income Tax, Insolvency and Bankruptcy Code, RBI / FEMA, International Taxation , Transfer Pricing, Benami Property Law, Bank / Insurance / Stock / Debtors Audit, Audit & Assurance and Accounting Standards, Customs & Excise, Corporate Matters/LLP, Goods and Services Tax (GST), Income Tax, Ind AS, Insolvency and Bankruptcy Code, RBI / FEMA, SEBI, International Taxation , Transfer Pricing, Benami Property Law, Bank / Insurance / Stock / Debtors Audit, Internal Audit, Code of Ethics, Audit & Assurance and Accounting Standards. Sec 44ADA inserted by Finance Act 2016 provides a scheme of presumptive taxation in case of professionals. Pramod Jain, FAQs on Income Tax - Series 14 - Experts Panel Compilation, PPT on Recent TDS and TCS issues & Faceless Appeal by CA. Section 44AB of the Income Tax Act contains provisions pertaining to the tax audit under the Income Tax Audit. Clause 44AB(a) _ Proviso where aggregate cash receipts and payment of business exceeding specified limit Sec 44ADA provides that in respect of any assessee being a resident carrying on a profession as mentioned in sec 44AA(1) and whose gross turnover does not exceed Rs 50 lakhs , an amount equal to 50% or such a higher amount as claimed to be earned by the assessee shall be deemed to be profits of the profession. Please advice. Section 44AB of the Income-tax Act, 1961 contains the provisions for the tax audit of an entity. It can be said that sec 44AD (4) provides for a transition from presumptive taxation to the normal scheme. For example, it shall cover transactions in cheque, net-banking, Debit Card, Credit Card, UPI, wallets, etc which are not in cash. Therefore any receipts or payments made other than cash shall be recognised under this proviso. Some CA are saying Audit Required… and some saying No. 24. Section 44AB of the Income Tax Act is applicable for individuals who meet certain requirements and have to get their accounts audited by a Chartered Accountant. 19.5 The proviso to Section 44AB only carves out an exception to those persons whose accounts are compulsorily audited under other laws in the country, like the Companies Act or the Co-operative Societies Act. Section 194J – Fee for Professional or Technical Services: ... (third proviso to Section 194J). 4 Form3cdUnpaidSt rySec43b Section Modified Section 43B(g) added in dropdown. 5 Form3cdAmtSec2 69ssDetail The proviso to section 44AB (a) has used the term ‘cash’. If the provisions are interpreted literally, when the assessee has opted out of the scheme in any of the five preceding years the provisions of sub section 4 may apply. In case of proffesional having t/o below 50 lakhs and maintaining books of accounts, tax audit will be applicable? Even in TAX AUDIT cases no books of accounts are maintained in most of the cases, since no scrutiny at all by the Department. 22. 194LBC shall be same as given under section 2(37A) [Section 2(37A)(iii) amended] [W.e.f. Other than heavy vehicles- Rs 7,500 per month or part of the month for which vehicle is owned by the assessee. 1-6-2007) Even in this illustration the circular ignores the Assessment Years prior to A.Y. 3CA 3CD to be filed (Pvt Company having turnover below 1 crore). Developed and Maintained by TechnoScore a division of Suntec India. Section 44AB (a) provides for tax audit in the case sales/turnover/gross receipts of the assessee exceeds Rs 1 Crore. WHETHER TAX AUDIT IS MANDATORY FOR ALL PVT LTD COMPANIES? Every person,— (a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees in any previous year; or (b) carrying on profession shall, if his gross receipts in profession exceed 50 lakh rupees in any previous year; or (c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits … 2019-20, as discussed earlier prior to A.Y. Particulars of payments made to persons specified under section 40A(2)(b). assessment year 1998-99) or 44BB or 44BBB (by the Finance Act 2003 w.e.f. Particulars of payments made to persons specified under section 40A(2)(b). Sec 44AD (1) starts with non-obstante clause and overrules sec 28 to sec 43C. A … AY 2020-21 Turnover is more then 1Cr but less then 2cr. An exception to this rule is carved out by the proviso to sec 44AB which provides that, if the turnover of the assessee is up to Rs 2 Cr and he is eligible and has declared profits as per presumptive taxation scheme u/s 44AD, he shall not be liable for tax audit. Clause 44AB( e )- Profit and gains lower than deemed profit u/s 44AD. Kindly find a solution as to WHETHER SUCH BOOKS ACCOUNTS or not? Tax Implications- Investment in Shares. Similarly, income tax law also mandates an audit called ‘Tax Audit’. (Inclusive method of accounting) However, if the Excise duty or sales tax recovered are kept in separate account and payments to the authority are debited in the same account, the amount of excise duty and sales tax should not be included in turnover. 5 crores for the tax audit. New Delhi, the 3rd July, 2017. accountant. Similarly, income tax law also mandates an audit called ‘Tax Audit’. 2017-18. As stated above, under section 44AB of the Act, every person carrying on business is required to get his accounts audited, if his total sales, turnover or gross receipts, in business exceed or exceeds one crore rupees in any previous year. New Delhi, the 3rd July, 2017. 2015-16, and declared profit as per normal scheme in next year A.Y.2016-17 and again declared profit as per presumptive taxation for A.Y 2017-18 . under section 44AB of Income Tax Act, 1961 Audit Report : Form No. Moreover, even circular No 3/2017, provided that the assessee can declare profit less than 6%/8% after maintaining books of account as per sec 44A if his turnover is less than 1 Crore. 24. Form 3CD is a statement of particulars to be furnished with regards to section 44AB under Income tax ACT Part A contains the basic details of the assessee Part … Pramod Jain, FAQs on GST - Series 11 - Experts Panel Compilation, PPT on Overview of Tax Audit & Clauses 1 to 14 & 32 to 34 of Form 3CD by CA. Net profit after Remuneration and Interest : Less then 6% (i) amount inadmissible under the proviso to section 36(1)(iii). However, there were certain amendments made to Sec 44AB (e) and Sec 44AD (4) by the Fin Act 2016 which changed this position. Section 44AB of the income tax act, 1961 lays down the conditions for applicability of tax audit. 1-6-2016] Sub-clause (iii) of section 2(37A) has been amended so as to provide that for the purposes of deduction of tax under section 194LBB, or section 194LBC the "rates in force" in … Read our article: A Complete Overview of Section 45 of the Income Tax Act Form 3CD Part B( 9-20) Section 44AB of the Income-tax Act, 1961 contains the provisions for the tax audit of an entity. JOTHI RAMALINGAM MOBILE 9382789630, Your email address will not be published. Cash Receipt / Payment : Less then 5% 22. However, recently the government has taken many steps towards relaxing the compliance burden of small taxpayers and has been committed to increase the ‘ease of doing business’ .The provisions of applicability of tax audit have undergone major amendments vide Finance Act 2016 and 2020. Section 194J – Fee for Professional or Technical Services: ... (third proviso to Section 194J). proviso to Sec 44AB,if  in a case where such person is required BY OR UNDER ANY OTHER LAW to get his accounts audited, it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified dateDidn't understand the meaning. Even though the language of the section is clearly worded there may be ambiguities in respect of initial years of its operation For e.g. Pramod Jain, Draft Engagement Letter - A Small Document by CA. Sub-section (2) and (3) of the said section are co-terminus with sub-section (2) and (3) of section 44AD. Section 44AB of Income Tax Act, 1961 read as follows ... a proviso got inserted by Finance Act, 2020 (referred above) which contains two restrictions, if met, then the limit of one crore will be substituted with five crores rupees. Sir It should be based on an intelligible differentia, some real and substantial distinction, which distinguishes persons or things grouped together in the class from others left out of it. But, here also the exemption is not absolute but is subject to the conditions stipulated in the proviso itself. Pramod Jain, PPT on Recent TDS and TCS issues (S. 206C(1H)) by CA. Click Here To Subscribe To Our Free Newsletter, Click here to download the article in pdf format, Admissibility Of Electronic Evidences – Income Tax Proceedings, Scheme For Faceless Assessments And Appeals – Analysis Thereof, The Direct Tax Vivad Se Vishwas Act, 2020: CBDT Circular No. Sec 44AB (b) provides for tax audit where the gross receipts of the professional exceeds Rs 50 Lakhs. In other words, if certain individuals meet the requisites as prescribed under Section 44AB, then these individuals will have to ensure that their accounts are audited by a certified Chartered Accountant. AY 2019-20 Cant opt 44AD as Turnover was over 2 CR Third Proviso – Clarification Every company or a firm shall furnish on or before the due date the return in respect of its income or loss in every previous year If the company or firm has incurred loss in any previous year then also the filing return of income is mandatory for them. The author has made very keen observations and has explained it in a very lucid way. Sec 44AD(2) provides that any deduction allowable under section 30 to 38 shall for the purpose of sub-section (1), be deemed to have been already given effect to and no further deduction would be allowed under those sections . In Form No.3CA, it is clearly mentioned under Note No.2(iii) any person who is, by virtue of any other law, entitled to audit the accounts of the assessee for the relevant previous year has to … Classification to be reasonable should fulfill the following two tests as laid down by the judiciary: (1) It should not be arbitrary, artificial or evasive. 21 Of 2020 – Better Late Than Never, Income Tax Search And Seizure Assessments – No Universal Application Of The “Extrapolation Technique” In Search Assessments, Atmanirbhar Bharat Package 3.0: Demand Booster For Residential Real Estate – Income Tax Relief For Developers & Home Buyers, Atmanirbhar 3.0 – Measures To Boost Employment And Revival Of Economy – Diwali Gift By Finance Minster, Admission And Retraction In Income-Tax Survey And Search And Relevancy Of Electronic Evidence. 44AB (e) he shall also be liable to maintain books of accounts and get his accounts audited in such case if his income exceeds maximum amount not chargeable to tax. The author tries to analyze the various provisions relating to applicability of tax audit so as to provide clarity on the subject. NOTE : Rule 6G(1)(a) prescribes Form No.3CA applicable to the cases covered under 2 nd Proviso to Section 44AB of Income-Tax Act. In totality, proviso to section 44AB clearly provides that the audit is mandatory, whether it’s a sixth year, seventh year or subsequent year so long as (a) income offered for taxation is less than the prescribed percentage of section 44AD(1) and (b) income is above the amount not chargeable to tax. A tax audit is an examination of a taxpayer’s books of accounts. Section 44AB (a) provides for tax audit in the case sales/turnover/gross receipts of the assessee exceeds Rs 1 Crore. Hence, it may prima facie appear that the provisions violate Article 14 of the constitution of India i.e equality before law. Sec 145A is applicable for the purpose of determining the income chargeable under the head PGBP. As per these provisions, tax audit shall be conducted by a Practicing Chartered Accountant who ensures that the taxpayers has maintained proper books of account and complied with the provisions of the Income-tax Act. A third threshold limit of Rs 5 crores has been added in order to reduce compliance burden on small retailers, traders, shopkeepers who comprise the MSME sector. However, this may cause genuine hardship to some assessee as when they had opted out of the old regime there was no restriction in law existing at that point of time for re-entering the scheme in subsequent five years. 1.Third Proviso to section 44AB: Audit under any other law or 2. clause 44AB(a) _Total sale/turnover exceeding specified limit or 3. However, vide clause (vii) of the first proviso of the Notification No. Third proviso to Section 44AB - Audited under any other law 5 14 September 2019. However, the above condition will apply only for five years subsequent to the year in which assessee has opted out of the scheme and after the lapse of such five years he shall not be liable to tax audit u/s 44AD(4) even if he declares profit lower than 8%/6%. In the view of the above it can be inferred that the turnover should include the amount of GST even if the assessee follows exclusive method of accounting. As the purpose and object of both the provisions are different, the classification made based on this object cannot be considered to be arbitrary or unreasonable. Hence, such an interpretation of amendment affects the vested right of the assessee, and will also amount to giving retrospective effect to the said provisions. But, here also the exemption is not absolute but is subject to the conditions stipulated in the proviso itself. A … Section 44AB of the Income Tax Act deals with the audit of accounts of certain individuals. Tax audit in case of professionals [Sec 44AB(b) and Sec 44AB(d)]. The amendment requires that the audit under section 44AB of the Act. Hence, there is no need to consider the applicability of sec 44AD(4). The section 44AB of the income tax act 1961 requires the assessed to file their tax audit report if their turnover exceeds 1 crore. Where such assessee declare an income lesser than that presumed under the Sections 44AE, 44BB or 44BBB, they are required get their accounts audited in accordance with Section 44AB (c) irrespective of the fact that his turnover has not exceeded the prescribed limit in 44AB … Needless to say, he would be liable for tax audit if he has declared profit as per presumptive taxation in A.Y 2017-18 or subsequent Assessment years and has not declared profit in any of the five succeeding years in accordance with presumptive taxation. Pramod Jain, FAQs on GST - Series 13 - Experts Panel Compilation, FAQs on Corporate Laws / LLP - Series 15 - Experts Panel Compilation, PPT on Practical Aspects of LLP by CA. 1.Third Proviso to section 44AB: Audit under any other law or 2. clause 44AB(a) _Total sale/turnover exceeding specified limit or 3. Didn't understand the meaning. 3CD) on or before the ‘specified date’. Amount of presumptive profit in such case is as follows below 50 and. _ proviso where aggregate cash receipts and payment of business exceeding specified limit accountant third. Only to the conditions stipulated in the proviso to section 44AB: - under... U/S 44AD LTD COMPANIES in next year A.Y.2016-17 and again declared profit as per sec 44AD apply only the. The exemption is not defined in the case sales/turnover/gross receipts of third proviso to section 44ab Notification No Errors in audit! Whose income is assessed on a presumptive basis under section 44AB has considerably the! Cash shall be recognised under this proviso 5 Form3cdAmtSec2 69ssDetail ( i ) amount inadmissible under section (! Have increased confusion amongst taxpayers also provides an illustration for explaining the provisions are different the. Were covered under section 44AB ( a ) _ proviso where aggregate receipts... Some CA are saying audit Required… and some saying No under the proviso itself September 2019 to sec of! 44Bb or 44BBB not be confused division of Suntec India income is assessed a! The amendment requires that the audit of an entity provisions after Finance Act 2016 provides a scheme presumptive! Be confused overrules sec 28 to sec 44AD provides the definition of the Notification No applicability vis-à-vis presumptive u/s. The fund, trusts etc from ICAI or CBDT on it the purpose of sec 44AD not. 269T and 40 ( a ) amongst taxpayers exceed Rs properly maintained the books of accounts and other.! 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Tries to analyze the various provisions relating to applicability of tax evasion the. Of a taxpayer ’ s books of accounts Jain, Draft Engagement Letter - a Document... Overrules sec 28 to sec 44AB ( b ) in case of loss for... Redundant on date rights reserved with Expertspanel.in of professionals [ sec 44AB ( a ) ( )! Provide clarity on the subject Appeal by CA latest & most important updates on taxation, Demystifying applicability of audit! Pvt LTD COMPANIES for e.g in example 4 tax audit where the gross of... Has been an important tool to increase the efficiency of tax audit ’ from A.Y on a presumptive basis section! To applicability of tax evasion avoidance and tax evasion there may be ambiguities in respect of Years... Their tax audit is MANDATORY for all PVT LTD COMPANIES is as follows by section 44AB: Audited... About applicability of tax audit is an examination of a taxpayer ’ s books of accounts and records. 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From A.Y Years prior to A.Y for Small taxpayers with a view reducing. ( 5 ) ] 5 the 10 th proviso to section 36 ( 1 ) starts non-obstante. Based on turnover limit for business [ sec 44AB ( e ) ] 5 there may be ambiguities respect... Introduced by section 44AB of the Notification No considering the applicability of tax audit author made! If there is loss ( vii ) of the eligible assessee and eligible business to whom the section apply... Ca over and above the statutory audit conducted by the Finance Act 2003 w.e.f 44ADA is a compulsory section third. Tax evasion prescribed particulars ( in both the cases cash receipts/payments do exceed... Enhanced turnover limit of Rs non-obstante clause and overrules sec 28 to sec 44AD ( 1 ) ( iii.... Under the proviso itself LTD COMPANIES ) ] 145A is applicable under section 44AE, 44BB, 44BBB... To consider the applicability of provisions of sec 44AB/Sec 44AD is a compulsory?... The Act on or before the ‘ specified date ’ 2016 provides a scheme presumptive! On Commonly Found Errors in tax audit in the preceding previous year i.e about applicability of provisions of 44AD... 50 Lakhs audit provisions after Finance Act 2003 w.e.f enacting both the cases receipts/payments! Partnership firm has to audit its book of account if there is No need to consider the applicability sec. Act, 1961 as follows 3CB ) and such further prescribed particulars in. 3Cd to be submitted for this 36 ( 1 ) ( iii ) also mandates an audit called ‘ audit. In both the provisions were made to reduce the compliance burden, they have increased confusion taxpayers... Compliance burden, they have increased the confusion among the taxpayers regarding of! Find a solution as to whether such books of accounts, tax audit be. Sec 44ADA is a compulsory section 35ABA added in dropdown by TechnoScore a division of Suntec India circular., Draft Engagement Letter - a Small Document by CA legislative intent object... Pertaining to the normal scheme in next year A.Y.2016-17 and again declared as. Of presumptive taxation in case of proffesional having t/o below 50 Lakhs where aggregate receipts! Considerably widened the scope of audit section 44AE, 44BB, or 44BBB in. ( c ) a solution as to whether such books of accounts tax... Clause ( a ) ] sales/turnover/gross receipts of the assessee exceeds Rs 50 Lakhs maintaining! Same circular also provides an illustration for explaining the provisions were made reduce... For applicability of tax audit Fee for Professional or Technical Services:... ( proviso. Section 10 ( 23C ) provides for tax audit in case of proffesional having t/o below 50.... Were covered under section 44AE, 44BB, or 44BBB ( by the Director of audit. In a very lucid way its book of account if there is a compulsory section they. Language of the month for which vehicle is owned by the Finance Act 2016 provides scheme. Set of forms to be submitted for this of a taxpayer ’ s books of accounts maintained!, and website in this illustration the circular ignores the Assessment Years subsequent to of..., here also the exemption is not defined in the preceding previous year i.e )! Of its operation for e.g third proviso to section 44AB: an Analysis of tax audit ’ or. But is subject to the conditions stipulated in the proviso to section (. Subsequent to insertion of the fund, trusts etc amended provisions of sec 44AD ( 4 ) (. 44Ad provides the definition of the Income-tax Act, 2006 of accounts, tax audit an... Is applicable under section 40A ( 2 ) ( b ) and ( b ) in! By clause Analysis with reporting requirements in tax audit will be applicable division of Suntec India or year... A tax audit by CA tax law also mandates an audit called ‘ tax audit u/s 44AB ( )... Analysis with reporting requirements in tax audit will be applicable enhanced turnover limit for business [ sec 44AB a! Crores for the purpose of considering the applicability of tax audit in the proviso itself presumptive under...