Compulsory Audit of Books of Accounts by Chartered Accountant (Section 44AB)

The following Persons are required to get their Accounts Compulsorily Audited by a Chartered Accountant : –

Different Taxpayers

When they are covered by the provisions of Compulsory Audit under section 44AB

A person carrying on Business

If the total sales, turnover or gross receipt in business for the previous year(s) relevant to the Assessment year Exceed or Exceeds Rs. 1 Crore.

A person carrying on Profession

If his gross receipts in profession for the previous year(s) relevant to the assessment year exceeds Rs. 50 Lakh.

A person covered under section 44AE 44BB or 44BBB If such person claims that the profits and gains from the business are lower than the profits and gains computed under these sections (irrespective of his turnover).
A person covered 
under section 44ADA
if such person claims that the profits and gains from the profession are lower than the profits and gains computed in accordance with the provisions of section 44ADA and if his income exceeds the maximum amount which is not chargeable to tax.
A person covered 
under section 44AD(4)
if a person carrying on business is covered by the provisions of section 44AD(4) and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year.

Specified Date shall be as under :

(a) Where the assessee is required to furnish a report of a chartered accountant as referred to in Section 92E relating to international transaction or specified domestic transaction30th November of the relevant Assessment Year.
(b) In any other case30th September of the relevant Assessment Year.
  1. In the case of a person Carrying on Profession, the provisions for compulsory audit are applicable if his gross receipts in profession exceed Rs. 50,00,000 in any previous year.
  2. In case of a person who is carrying on the business and covered under section 44AE, 44BB or 44BBB and claims that his income from the said business is lower than the deemed profits and gains computed under the above relevant Sections, he shall have to get his accounts of such previous year audited by a Chartered Accountant on or before the Specified Date.
  3. Where a person who is carrying on a profession referred to in Section 44ADA and claims that:
    1. income from such profession is lower than 50% of the gross receipt of the profession; and
    2. his income exceeds the maximum amount which is not chargeable to income tax in any previous year
  4. A person carrying on a business shall,—

Report of Audit of Accounts [Rule 6G]

  1. The report of audit of the accounts of a person required to be furnished under section 44AB shall:
    1. in the case of a person who carries on business or profession and who is required by or under any other law to get his accounts audited, be in Form No. 3CA;
    2. in the case of a person who carries on business or profession, but not being a person referred to in clause (a), be in Form No. 3CB;
  2. Further, the particulars which are required to be furnished under section 44AB shall, in the case of a person carrying on business or profession, be in Form No. 3CD;

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