Today we will discuss whether one can get Tax Audit Report u/s 44 AB of the Income Tax Act, 1961 and can e file it on income tax website voluntarily.

This voluntary tax audit has following points :

1] Person is not required to get his books of account audited and furnished as per section 44AB of the Income Tax Act, 1961.

2] But he or she wants to obtain and furnish Tax Audit Report as per provisions of Sec 44AB of the Income Tax Act, 1961.

Now if any person not required to get his books of audited and furnished as per section 44 AB of the Income Tax Act, 1961, then he can by  his choice, can get his books of account audited as per sec 44 AB of the Income Tax Act, 1961. Here getting books of account audited as per sec 44 AB of the Income Tax Act, 1961 means getting books of audited by an Accountant [ as per Explanation below sub section [2] of section 288 of the Income Tax Act, 1961. ] in the prescribed form and manner . Here as per Rule 6G of the Income Tax Rule, Tax Audit Report u/s 44AB should be issued in Form 3CB or 3CA and particulars which are required to be furnished under section 44AB shall be in Form No. 3CD..

So any one can get his books of audited in Form 3CB or Form 3CA [as applicable] and certain particulars as per Form 3CD.

But next part of this provisions is to furnish the Audit Report  as per sec 44AB of the Income Tax Act, 1961. Here we comes across legal issues. Because In form 3CD, in clause 8, assessee has to indicate the relevant clause of section 44AB under which the audit has been conducted.  And  in this clause, following options are available :

  • Clause 44AB[a]- Total sales / turnover / gross receipts in business exceeding specified limits
  • Clause 44AB[b] – Gross receipts in profession exceeding specified limits
  • Clause 44AB[c] – i- Profit and gains are lower than deemed profit u/s 44AE
  • Clause 44AB[c] – ii- Profit and gains are lower than deemed profit u/s 44BB
  • Clause 44AB[c] – iii- Profit and gains are lower than deemed profit u/s 44BBB
  • Clause 44AB[d] –  Profit and gains are lower than deemed profit u/s 44ADA
  • Clause 44AB[e] –  When provisions of sec 44AD[4] are applicable.
  • Clause 44AB[3] –  Third proviso to sec 44 AB: Audited any other law
  • Clause 44AB[a] –  Proviso where aggregate cash receipts and payments exceeds specified limits.

So while preparing Form 3CD , assessee has to indicate under which clause, tax audit is applicable. So if a person is not required to get his books of account audited under any provisions of sec 44 AB, then he cannot indicate any clause for tax audit in above clause. So if he do not indicate any clause in Clause 8 of Form 3CD, then his xml file for Audit Report will not be generated and obviously not uploaded on Efiling website of the income tax Department. So his report will not be furnished with Income Tax Departments.

Practically, he can obtain audit report in Form 3CB/CA and in Form 3CD from an Accountants, but will not in position to furnish this report with income tax departments.

After examining legal facts, conclusion can be drawn that it is not possible for person who is not required to get books of account audited u/s 44 AB and 44AD[4]  to furnish tax audit report specified in Rule 6 G with Income Tax Department.

So voluntary furnishing of Tax Audit Report is not possible.

Disclaimer: Above discussion is made for general information purpose. Please go through and let me know , if there is any error or omissions or other views, if possible which will helpful to all professionals.Thanks.

CA Shirish Vinchurkar,

Chartered Accountants. Chalisgaon Maharashtra. [email protected]

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