03 June 2014
Audit conducted under companies act is known as statutory audit. Audit conducted under Section 44AB of the Income Tax Act is known as Tax Audit.
The Statutory (external )audit deals mainly with the examination of the books and financial records of a client firm and reports to the shareholders.Appointed by stakeholders.Stautory Function. Appoinment under Companies Act u/s 44AB of Income Tax Persons earning more than Rs. 40 Lakhs, should maintain books of account for the same. His accounts should be audited by a Chartered Accountant and certify that is called tax audit.Report to Income Tax department (3CA)and details in 3CD in specified format and Return in ITR1-8. This is under Income Tax Act.
Audit conducted in any STATUE is known as Statutory Audit, even tax audit is a Statutory Audit. --- Tax audit is a kind of statutory audit which is done under the Income tax act.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
04 June 2014
IS IT POSSIBLE TAX AUDIT AND STATUTORY AUDIT (BOTH ) MAY APPLICABLE TO ONE ENTITY
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