Tax audit

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CA PAYAL GUPTA (Querist)

04 July 2014 one of my client is a proprietor and tax audit is applicable to him. he has a propritory business and have personal interest income. he has prepared two balance sheets one for business and other for his personal income.
now my question is

1. wether all the income is clubbed for calculting tax audit limit i.e busineess income and his personal interest income.

2. wehther tds provision apllicable for hispersonal interest income and personal interest payment which he used for personal purpose.

3. if he audits his account as per section 44ad then what procedure to be followed.

reply fast its urgent

thank u

CMA Nishad Patkar

CMA Nishad Patkar (Expert)

06 July 2014 1. Provision of Tax Audit U/S 44AB is only Applicable in case business and profession Income and not to any other income source. Hence His personal interest cannot be clubbed to determining the ceiling of Turnover or Receipt for Tax Audit.

2. Can you please elaborate this question.

3. You mean Audit u/s 44AB?
Anyway As per your point No.3-- As you specify in first para Tax Audit is applicable to your client,in such case Section 44AD is not applicable to him.

For any further query you can reach me on

nishad_patkar@yahoo.com

CA PAYAL GUPTA

CA PAYAL GUPTA (Querist)

07 July 2014 one of my client is a proprietor and tax audit is applicable to him. he has a propritory business and have personal interest income. he has prepared two balance sheets one for business and other for his personal income. now my question is

1. in his personal accounts he shows interest paid 23000 to individul. now my question is wehter tds would be deductible on this amount as tax audit applicable to him. if yes then give me refernce for this reply.
thanx for ur early reply

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