Maximum Allowable Number of Tax Audits by Practicing CA
Tax audit limit increased from 45 to 60 for audits conducted during the financial year 2014-15 and onwards. – (11-02-2014) In view of the enhancement of professional competence of members to perform quality services in an IT-enabled environment, the Council of ICAI at its 331st meeting held on 10th-12th February 2014 decided to increase the “specified number of tax audit assignments” for practicing Chartered Accountants, as an individual or as a partner in a firm, from 45 to 60. The said limit will be effective for the audits conducted during the financial year 2014-15 and onwards. Accordingly, the Council Guidelines No.1- CA(7)/02/2008, dated 8th August 2008, stands amended from 1st April 2014 as: In the Council General Guidelines, 2008, the Council Guidelines No.1-CA(7)/02/2008, dated 8th August,2008, in Chapter VI “Tax Audit assignments under Section 44AB of the Income-tax Act, 1961 “, in Explanation given in Para 6.1, in sub-para(a) and sub-para(b), the figure “45” be substituted with the figure “60”. (Source: http://www.icai.org/post.html?post_id=10354) Let us note that a thorough understanding of Tax Audit will require an appropriately detailed Tax Audit Program/Check List, etc., as well to be prepared by individual Tax Auditors depending upon the nature of clients they have and other relevant factors. Albert Einstein said: Everything should be made as simple as possible, but not simpler. Let us consider the issue of tax audit from this perspective. Let us not oversimplify things so that the fundamental essence gets lost in the process. Ahead of the Tax Audit season this year, all the aforementioned changes/amendments that took place in the various Clauses of Revised Form No. 3CD needs careful attention since this can change our Tax Audit Program/Checklist altogether, and then, not even a small/minor/single requirement of reporting of certain fact/thing shall get missed/ skipped from our side Recommended Articles
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