The TAX AUDIT under Section 44AB ITA 1961 is mandatory for:
Answer & Solution
Correct answer: B.
1. Section 44AB Income Tax Act 1961 prescribes mandatory TAX AUDIT by a Chartered Accountant.
2. APPLICABLE TO:
3. (a) BUSINESS with TURNOVER > Rs 1 CRORE in financial year; OR
4. (b) Business with TURNOVER > Rs 10 CRORE in financial year IF 95% of total receipts and total payments are in non-cash mode (digital);
5. (c) PROFESSION with GROSS RECEIPTS > Rs 50 LAKH in financial year;
6. (d) Assessees opting for PRESUMPTIVE SCHEME under Sections 44AD/44ADA/44AE who declare profits below specified percentages.
7. AUDIT REPORT in FORM 3CA/3CB and 3CD.
8. DUE DATE: 30 September of assessment year (extended/varied as case).
9. PENALTY for default (Section 271B): 0.5% of turnover or Rs 1,50,000 — whichever is LESS.
10. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Section 44AB_
Related questions
Section 80GG ITA 1961 provides DEDUCTION for HOUSE RENT PAID by salary earners NOT receiviDOUBLE TAXATION AVOIDANCE AGREEMENT (DTAA) under Section 90 ITA 1961:Section 9 ITA 1961 prescribes when INCOME is DEEMED to ACCRUE OR ARISE in India for non-reSection 79 ITA 1961 restricts CARRY FORWARD of LOSSES of a COMPANY in case of CHANGE in BESections 73-75 CGST Act 2017 prescribe procedures for tax DEMANDS where TAX has been NOT PSection 5 IGST Act 2017 levies IGST on:Under Section 269ST ITA 1961, CASH RECEIPTS of Rs 2 LAKH or MORE from a single person in rThe DIRECT TAX VIVAD SE VISHWAS ACT 2020 was enacted to: