Tax Audits under Presumptive Tax Scheme to be excluded for reckoning “Specified number of Tax Audit Assignments”: ICAI [Read Announcement]

The Institute of Chartered Accountants of India ( ICAI ), in an announcement, informed that the tax audits conducted under the presumptive tax scheme under the provisions of sections 44AD, 44ADA and 44AE of the Income Tax Act, 1961 shall be excluded for the purpose of reckoning the “specified number of tax audit assignments”.

The ICAI further informed that the Council of the Institute at its 368th meeting held in August 2017 decided to exclude the audit conducted under section 44ADA of the Income-tax Act, 1961 for the purpose of reckoning the “specified number of tax audit assignments” under Chapter VI of the Council Guidelines as section 44ADA of the Income-tax Act, 1961 also contains special provision for computing profits and gains of profession on presumptive basis.

In view of the aforesaid decision of the Council, the Council Guidelines No. 1-CA(7)/02/2008 dated 8th August 2008 has been amended and accordingly, audits conducted under Section 44AD, 44ADA and 44AE of the Income Tax Act, 1961 shall not be taken into account for the purpose of reckoning the “specified number of tax audit assignments”.