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CS Professional · Advanced Direct Tax Laws and Practice · Tax Audit

A consultant's gross receipts from profession are Rs 80 lakh in the tax year, and a separate law requires her accounts to be audited. Under section 63 of the Income-tax Act, 2025, which statement is correct?

She satisfies section 63 by getting the accounts audited under the other law before the specified date and furnishing that report, along with the accountant's report in the prescribed form, by that date. A second separate audit is unnecessary.

  1. AThe audit under the other law fully replaces any report of the accountant
  2. BShe must get accounts audited under the other law before the specified date and furnish that audit report along with the accountant's report in the prescribed form by that dateCorrect
  3. CShe must conduct a second separate audit after the audit under the other law
  4. DNo audit is needed, as professional receipts below one crore rupees are exempt

Explanation

Professional gross receipts exceeding fifty lakh trigger audit. Under section 63(4), audit under another law suffices if done before the specified date and its report is furnished along with the accountant's report in the prescribed form by that date. Option A omits the accountant's report; option D wrongly uses the business limit.

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