Section 44AB of Income Tax Act – Applicability & Audit Reports

Income Tax Audit – Various kinds of audit being conducted under the different laws such as company audit conducted under company law, cost audit, stock audit etc. Similarly, Income tax law also mandates an audit known as ‘Tax Audit’. Tax audit is an examination of books of accounts of the business/profession from income tax perspective.

* Where-

  1. Section 44BB (non resident engaged in the business of exploration of mineral oils)
  2. 44BBB (any foreign company engaged in the business of civil construction etc. in certain turnkey power projects)
  3. 44AD (any business other than business referred to in 44AE)
  4. 44ADA (eligible professionals)
  5. 44AE (business of plying, hiring or leasing of goods carriages)
  • Above are presumptive taxation schemes. Where certain fixed percentage of income or amount is assumed to be the profit for the purpose of taxation.
    Under Income Tax Audit Turnover means the gross receipts of the business or profession, but does not include:
    1. Income received from renting of the house or any other rental income.
    2. Any money received by selling of an asset, held as Investment.
    3. The Income by selling of a Fixed Asset.
    4. Interest Income.

Form 3CA -Where the books of accounts of the business or profession of the person have been audited under any other law, Form 3CA is required to be filed.
Form 3CB– Where the books of accounts of the business or profession of the person have not been audited under any other law, in such a case Form 3CB is required to be filed.
Form 3CD – Form 3CD is the form that has to be filed in both of the above cases. Form 3CD is the Statement of particulars to be furnished under section 44AB
* The audit report under Income Tax shall be shall be filed before 30th September of the relevant Assessment Year.

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