tax audit under section 44ab

Tax Audit under Section 44AB – Changes for AY 14-15

January 22, 2015

An Assessee is liable to get his/her Tax Audit done by a Chartered Accountant mandatorily, if in the previous year,

  1. The Person is carrying on business and the Total Sales/Turnover exceeds  1 Crore(Limit increased w.e.f 1st April 2012) or
  2. The Person is carrying on Profession, and the Gross Receipts exceed  25 Lakh(Limit increased w.e.f 1st April 2012) or
  3. The Person is carrying on a business or a profession and is covered under the provisions of section 44AD, 44AE, 44AF, 44BB or 44BBB and claims that the income from the said business/profession is lower than the deemed profits and gains computed under the relevant section

The Due Date for the report filing tax audit under section 44AB is 30th September of the Assessment Year. However, for AY 2014-15 the due date of filing the Tax Audit Report has been extended from 30th Sept 2014 to 30th Nov 2014.

On 26th Sept, CBDT has also announced that due date for filing ITR has also now been extended from 30th Sept to 20th Nov.

For those assessees’ who are not liable to get their Tax Audit under Section 44 AB – the Due Date of filing Income Tax Return is 31st July.

Several changes in Tax Audit Report have been introduced vide Income Tax Rules 2014 (7th Amendment) are applicable from this AY 2014-15 onwards. CBDT has amended Form 3CA, Form 3CB & Form 3CD and these amended Forms now require an explicit mention of the observations/qualifications if any, by the auditor at the time of issuing the true and correct audit report.

With the introduction of these changes, the tax auditor’s responsibilities in reporting detailed information under the new/amended clauses have increased significantly.

In case an Assessee is liable to get his/her Accounts audited by an Accountant under any other Law for the same accounting period, the assessee is not mandatorily required to get his/her audit done again and is only required to submit a report in the form mentioned below. However, if the Accounting period is different from the Accounting period for which the Audit was done under any other Act, the Tax Audit may be required to be conducted again as per the Income Tax Act. 



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2 Responses to “Tax Audit under Section 44AB – Changes for AY 14-15”

  1. Arjun

    Should the chartered accountant have a certain minimum number of years experience to do the Audit Report?


    Dear Sir,
    What is the tax audit limit for the assessment year 2017-18. I understand that it is Rs. 1 crores like last year and there is no change in the assessment year 2017-18.

    Please clarify.

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