Audit Under Fiscal Laws – Test 1

As per Sec. 44AB of Income Tax Act, 1961, tax audit is required in which of following cases:

As per Sec. 44AB of Income Tax Act, 1961, tax audit is required in which of following cases:

A per Sec. 44AB of Income Tax Act, 191, tax audit is required in which of following cases:

Section 44AB is not applicable to assesses covered under section:

Mr. A is having turnover of 1.5 cr from his business in F.Y. 18-19. He has opted presumptive taxation u/s 44AD.

Mr. Y aged 50 years is having turnover from business in F.Y. 18-19 of 90 Lakhs from which he is having loss of Rs 2,00,000. He is also having salary income of 10,50,000. During F.Y. 17-18, he opted for presumptive taxation.

Mr. X deals in a commodity and purchase and sales of that commodity is ultimately settled otherwise than by the actual delivery. During the financial year 2018-19 he purchased the commodity worth 95 LAcs and sold the same commodity for 104 Lacs and the contract was settled otherwise than by the actual delivery.

M/s A Ltd. engaged in business presented the following information to you for the FY 18-19. Turnover made during the year 124 lacs. Goods returned in respect of sales made during FY 17-18 is 20 lacs not included in the above. Cash discount allowed to his customers 1 lac for prompt payment. Special rebate allowed to customer in the nature of trade discount 5 lacs. Effective turnover to be considered for the prescribed limit of tax audit will be:

A Co-operative society having receipts over 2 crores have appointed Mr. D as the statutory auditor. Mr. D is eligible to do the same under the State under the State Co-operative Societies Act. Mr. D is not a chartered accountant.

Under the provisions of Sec. 44AB of Income Tax Act, 1961, the audit shall be conducted by an Accountant as explained u/s 288(2) of the Act. The Term “Accountant” means a Chartered accountant as defined in Sec. 2 of the Chartered Accountants Act, 1949, who holds a valid certificate of practice, but does not include an individual who:

Under the provisions of Sec. 44AB of Income Tax Act, 1961, the audit shall be conducted by an Accountant as explained u/s 288(2) of the Act. The Term “Accountant” means a chartered accountant as defined in Sec. 2 of the Chartered Accountants Act, 1949, holds a valid certificate of practice, but does not include a person who has been convicted by:

Which clause of Form 3CD required the tax auditor to report the method of valuation of closing stock employed in the previous year.

Clause 15 of Form 3CD requires the tax auditor to report the particulars of the capital asset converted into stock-in trade. The particulars to be reported are:

Clause 16 of Form 3CD requires the tax auditor to report certain amounts not credited to the profit and loss account. Which of the following is not required to be reported under Clause 16:

Clause 17 of Form 3CD requires the tax auditor to furnish certain information in a situation where any land or building or both is transferred during the previous year for a consideration less than value adopted or assessed or assessed or assessable by any authority of a____________.

Clause 21(a) of Form 3CD requires the tax auditor to furnish the details of amounts debited to the profit and loss account, being in the nature of capital, personal, advertisement expenditure etc. Which of the following amounts does not require reporting under Clause 21(a)

Mr. R, the Tax Auditor finds that some payments inadmissible under Section 40A(3) were made and advised the client to report the same in form 3CD. The client contends that cash payments were made since the other parties insisted upon the same and did not have Bank Accounts.

As the tax auditor of a Company, how would you report on payments exceeding 10,000 made in cash to a supplier against an invoice for expenses booked in an earlier year?

As a tax auditor how would you report the following: An assessee has paid rent to his brother 2,50,000 and paid interest to his sister 4,00,000.

Amount of profit chargeable to tax under section 41 and computation thereof is required to be reported under:

Tiger Ltd., is a company engaged in the production of wool. Along with its production business, it is also engaged in buying and selling of securities with the expectation of a favorable price change. During the year, its speculation loss on account of purchase and sale of securities was to the tune of 12 lacs.

Clause 31(a) of Form 3CD requires the auditor to furnish the particulars of each loan or deposit in an amount exceeding the limit specified in Sec. 269SS taken or accepted during the previous year. The limit specified u/s 269SS is:

Clause 31(ba) of Form 3CD requires the auditor to furnish the particulars of each receipt in an amount exceeding the limit specified in Sec. 269ST, in aggregate from a person in a day or in respect of a single transaction or in respect of transactions relating to one event or occasion from a person, during the previous year, where such receipt is otherwise than by a cheque or bank draft or use of electronic clearing system through a bank account. The limit specified u/s 269ST is:

Section-wise details of deductions, if any, admissible under Chapter VIA or Chapter III of Income Tax Act, 1961 is required to be reported:

Clause 34 of Form 3CD requires the tax auditor to report:

Clause 36A of Form 3CD requires the tax auditor to report whether the assessee has received any amount in the nature of dividend as referred to in sub-clause (e) of clause (22) of Section 2. If yes, tax auditor is required to furnish:

Clause 40 of Form 3CD required the tax auditor to furnish the details regarding turnover, gross profit, etc., for the previous year and preceding previous year. Such detail is required for:

In the case of a domestic company, tax auditor is required to furnish in Form 3CD, the details of tax on distributed profits under section 115-0, the following:

Details of demand raised or refund issued during the previous year under any tax laws other than Income Tax Act, 1961 and Wealth tax Act, 1957 along with details of relevant proceedings is required to be reported:

Tax auditor is required to report whether the assessee is required to furnish statement in Form No.61 or Form No. 61A or Form No. 61B. If yes, tax auditor needs to furnish: