The document critiques the restrictions imposed by the Income Tax Act Section 44AB, highlighting that it limits compliance opportunities for non-CA tax professionals and results in a narrow tax base in India. It argues for broader recognition of cost accountants as equally competent in various accounting domains compared to chartered accountants. Additionally, it questions the rationale for the audit requirements under Section 44AB and suggests these restrictions deviate from the original legislative intent.

1. WHY ONCE AGAIN AUDIT U/S 44AB OF INCOME-TAX ACT
(1) 46 Plus Certificates from only Chartered Accountants prevailing in Income-Tax Act barricade
support from other 4 class of Non-CA Tax Professionals, causing strict hurdle for voluntary
compliance, resulting in not widening tax base in India. Present strength of 69,630 Practicing CAs
does not meet the requirements on one hand & Non-CAs Tax Professionals have to search for empty
slots of Practicing CAs Signature to give compliance in case of their clients covered by 44AB
Certificate during due dates-See Attachment..S.44AB has become big business & one of the
peculiar situation prevailing only in India in the process of tax law compliance.
(2) World over functions of Accounting are classified depending on the area of operation, application
and usage. They are as under.
Cost Accounts >Manufacturing/Processing Activity
Financial Accounts >Trading Activity
Management Accounts >Management Level/Decision Making
Management Accounts is nothing but application of Ratio Analysis and Cash Flow Statement on
Cost and Financial Accounts. By The Cost and Works Accountants Amendment Act, 2011, name
has been changed to “The Institute of Cost Accountants of India” and the members got the
power to work in the area of Management Accounts also and can re-designate themselves as
ACMA or FCMA. Cost Accountants now possess wide power of working in the area of Cost
Accounts, Financial Accounts & Management Accounts. Whereas, Chartered Accountants are
restricted to work in the area of Financial Accounts only - Accounting of Trading Activity Only. Hence,
ICAI-Cost & Management should be called full accounting body in INDIA-See Attachment
(3) Audit is not the domain of CAs. 46 Plus CA Certificates prevailing in IT Act taking away original
intention of legislature in Rule 12-A of IT Rules. In Rule 12-A of IT Rules, out of 8 only 5 class of
Authorised Representatives are licensed to prepare Income-Tax returns. When all 5 class are
licensed, how Deptt. of Revenue took the stand that granting certification powers to other 4 class of
Non-CA Tax Professionals felt not feasible-See Order No.148/8/2015-TPL Dt.26.08.2016 issued by
CBDT-See Attachment. When Rule 12-A takes care of Audit, why once again 44AB Audit inserted in
the statute book of Income-Tax Act.
Author : B.S.K.RAO, Auditor & Tax Advocate,
BDKRAO, Beside SBI, Shimoga-577201, Karnataka
MO : 0-9035089036, E-Mail : raoshimoga@gmail.com

2. GOVERNMENT OF INDIA
INCOME.TM DEPARTMENT
OFFICE OF THE ADDITIONAL DIRECTOR OF INCOME TAX (CPC)(e-Filing)
Centralised Processing Centre, I Floor, Prestige Alpha Building,
No. 48/1, 4Sl2,Beratenagrahara, Hosur Road, Bangalore-560 100.
dd l. DIT/CPC(e-Fi li ne)/Rrt/ 2oLs-L6/ Dated: 04/06/20L5
The CPIO,
CPC, Bangalore
Madam,
sub: Application u/s 6(3) of the RTI Act, 2005 filed by shri B s K Rao - reg.
Ref: F.No/l nfo/46/ AprnlcPto/2oL5-!6 dated 25/05l2oL5
With reference to the above mentioned application. The response in respect of
the said RTI application is as follows:-
Yours faithfully
Deputy Director(Systems)
CPC, e-Filing,Bangalore.
Particulars Asst. Year 20I2-t3 Asst.Year 2Ot3-L4 Asst. Year 1OL4-L5
Total lncome-Tax Admitted in ITR-4
(nupees tn Crores) 43996 4366135604
Total lncome-Tax Admitted in ITR-5
(Rupees ln Crores) 2]-282 25294 27942
Total lncome-Tax Admitted in ITR-6
(Rupees ln Crores) 242707 262628 29033s
Number of Tax Audit Cases Covered 1871845 L757697 L832547
Number of Unique Auditors signed 69L47 59133 59630
EXHIBIT-2

6. Name of Applicant
Address of Applicant
Application Registration No.
Date of Application
Date of CIC order
Date of receipt of CIC order
Date of order
1481812015-TPL
Government of India
Ministry of finance
Department of Revenue
Central Board of Direct Taxes
(Tax Policy and legislation)
New Delhi, 26'o August 2016
Order under Risht to Information Act.2005
BSK RAO
BDKRAO BESIDE SBI, TILAK
NAGAR SHIMOGA -577201
P*TV t826120 I 4/PMR
26.03.2014
9.08.2016
17.08.2016
26.08.2016
Order
Please refer to CIC order dated 9.08.2016 directing the CPIO, this office to take
necessary action on the RTI application dated 26.03.2014 referenced vide
PMOIN/R/2014160331 seeking information on the queries raised in the above mentioned RTI
application. The CIC has ordered the CPIO to furnish the information within 2l days of the
receipt of CIC orderon information pertaining to item no (4) in the RTI application.
2. In compliance with the direction of CIC, the above mentioned RTI application
received during the course of CPIO hearing has been examined. It may be noted that this
_4!yi.qioq has not received the RTI application prior to CPIO hearing notice. Subsequently, it is
found that in the application there were four items of which first three items were illustrative
in nature and item No. 4 seeks information from this offtce.
3. Item No. 4 of the application has been reproduced for necessary reference:
(4) At the time of releasing election manifesto on 26.03.2014, your honour talked
about focus on creation of employment. In this regard kindly provide me action taken by the
Govt. about degeneration of self-employment of well diversified group of Non-CA Tax
P r ofe s s i onal s of Indi a.

7. 4. In this regard as directed by CIC order dated 9.08.2016; i am furnishing the
following information.
This division does not deal with employment generation or degeneration activity of
Non-CA tax professionals and no statistics pertaining to employment generation or
degeneration in general is maintained with this division. However your core suggestion in
the RTI application with respect to well diversified group of Non-CA tax professional to be
empowered to conduct Audit of tax cases as per section 44AB of the Income Tax 196l has
been received by this divisian through similar such requests given vide other RTI Jiled by you
before this ffice such as RTI registered vide CBODT/R/2014/65013 dated 17.3.2014.
Accordingly it was found that this suggestion was considered for annual budget discussion
and examined for necessary amendments in Income Tax Act 196l during the enactment of
Finance (No.2 ) Act,2014. During the course of Budgetary discussion the proposal was found
not feasible at the time of framing of Finance (No.2) Act,20I4. Hence the same was not
implemented in the Finance (No 2) Act,2}l4.
5. In this context, it is may also be mentioned that the guidelines have been issued by
DOPT vide F. No. 1/4/2008-IR dated 25.04.2008 for dealing with RTI application. Wherein
vide Para 9 of this guidelines states that:
"9 only such information is required to be supplied under the Act which already exists
and is held by the public authority or held under the control of the public authority. It is not
required under the Act to create information; or to interpret information; or to solve the
problems raised by the applicantSl or to furnish reply to hypothetical questions".
6. Thus those items falling within the purview of information available with this division has
been communicated. Further, this office is not empowered to interpret information to create
information or to communicate an opinion of higher authority under the RTI $ct. &.o
(Lal&hmi
Under Secretary GPL-UI)
2005.
Shri B.S.K. Rao,
ft.dito, &Tax Advocate, BDKRAO
r-l Beside SBI, Tilak Nagar,
Shimo ga 57 7 201 (Kaarnataka)
Copy submitted to
Shri. Basanth Seth
Information Commissioner
Club Building (Near Post Office)
Old JNU Campus, New Delhi - 110067