The ICAI has set a tax audit limit for CAs.
• It is crucial to know that the number of tax audit reports that may be filed by Chartered Accountants is limited. The maximum number of tax audits that a Chartered Accountant can perform is 60. In the event of the firm, the tax audit limit restriction will apply to each partner.
Legislation for Financial Year 2020-21 Under section - 44AB
• Business:-Sales etc. > Rs.1 Cr/5 Cr.
• Profession:-Gross Receipt etc. > Rs.50 Lakhs 
• Business:- U/s-44AE/BB/BBB, Income<Deemed Profit
• Profession:- U/s-44ADA, Income<50% Plus TI >Basic Exemption Limit
• Business:- U/s-44AD, Income<8%/6% Plus TI >Basic Exemption Limit
Forms 3CA and 3CD
Anyone who is obliged to have a tax audit must provide the following information when submitting an income tax return:
• Form 3CA – Audit Form 
• Form 3CD – Statement including pertinent information
Rule– 6G: Specify the form for the audit report U/s-44AB.
Form-3CA • Report if, Audit under any other Law
Form-3CB • Report in Other Cases
Form-3CD • Annexure to Report-Form-3CA/3CB
Section-271B-Penalty for failing to have an audit conducted U/s-44AB the Lower  of the following: - 
• 5% of total sales/turnover/gross receipts,  
• RS 1.50 Cr 
Form-3CA & 3CB: Qualification Para
Many tax audit reports do not include the "Assessee Responsibilities" and "Tax Auditors Responsibilities" as required by SA 700 Guidance Note.
It was also discovered that Qualification Para Certain TAR has a reference to Form-3CD, which is not a qualification but rather general supplementary information.
• Clause-(8) of Form-3CD: Indicate the relevant clause of section 44AB under which the audit has been conducted
• Clause (a) of 44AB
• Clause (b) of 44AB
• Clause (c) of 44AB
• Clause (d) of 44AB
• Clause (e) of 44AB
• 3rd Proviso to 44AB:Audit under any other Law
• 3rd Proviso to 44AB:-
• Provided also that in a case where such person is required by or under any other law to get his accounts audited, it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and furnishes by that date the report of the audit as required under such other law and a further report by an accountant in the form prescribed under this section.
• Observation: 
• It has been observed that the Tax Audit report of “Companies/LLP” which needed Audit under Co. Act 2013 & LLP Act 2008 correspondingly, choose clause (a) rather than option 3rd Proviso to 44AB.
Address Observation: 
Clause-(2) of Form-3CD: -
• It has been discovered that several TAR addresses in Form-3CA/3CB do not match those supplied in “Annual Reports to MCA.”
• According to GN, TAR shall contain the address reported by the assessee to the Income Tax Department for assessment purposes as of the date of signing of the A.R.
Clause-11(a) of Form-3CD:
 Whether or whether books of account (BOA) are required under section 44AA, and if so, a list of the books required.
• U/s-44AA No books of account are required for business. 
• Also, the company act 2013 does not prescribe any BOA for companies. 
• As a result, for BUSINESS, TAR should have “No” under this sub-clause.
Form-3CD Clause-11(c): List of books of account and type of relevant papers reviewed.
• It has been noted that tax auditors do not offer references for all essential documents reviewed, such as invoices, bills, client certificates, confirmations, and so on.
• Because it is a requirement of the Guidance note, please mention it.
Clause-22 of Form-3CD: Amount of interest inadmissible under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006.
• Notices that interest paid to MSME is represented in the annual report but not in the TAR.
 Clause-34(a) of Form-3CD: Whether the assessee is required to deduct or collect tax as per the provisions of Chapter XVII-B or Chapter XVII-BB, if yes please furnish.
• It has been discovered that the total expenses in TAR, such as salary, rent, professional charges, and commission, do not match the figures in the Audited Financial Statement

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