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Audit under section 44ab. (Income Tax)

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This query is : Resolved

( Author )
24 May 2012

Under Section 44AB of the Income Tax Act, how is the gross turnover/receipts calculated in the case of a commission agent?

Please look into the following two aspects.

1. Is an audit u/s 44AB mandatory only if the commission exceeds Rs. 60 lakhs.

2. Assuming a selling commission agent earns a commission of 2%, and the sales effected by him are Rs. 60 lakhs, and his commission income on it turns to be Rs. 1.2 lakhs, is he liable for tax-adit u/s 44AB given his turnover/sales exceeds Rs. 60 lakhs?

Regards & Thanks,


( Expert )
24 May 2012

Dear Hasan,

Tax audit under 44AB is mandatory for all two aspects mentioned by you above.But
F/Y 2012-13 the ceiling limit for 44AB is 1 Crore

Thank You

CA CS Amit S. Kedia

( Expert )
24 May 2012

Dear Hasan,
Tax Audit is applicable only in first case.
Commission income is to be looked at and not the gross sale effected by him.

CA. Vinod

( Expert )
24 May 2012

Turnover effected by him is not his turnover in second case, no tax audit is required.



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