banner_ad

Tax audit u/s 44ab

Others 4494 views 17 replies

 

An assessee is carrying two business. The Turnover of first business does not exciding 60lacs, but The Turnover of second business exciding 60 lacs. Is the assessee liable for Audit U/s 44AB for the both businesses?

Replies (17)

no as per IT act  he is liable for the audit only for the business which turnover is more then 60 lakhs..

Under income tax it doesnt matter if he is havin one business or more..Section 44AB is attracted if the gross receipts are more than 60 lacs from one or more businesses

audit will be done on individual business bases

means 60 loakh limit will be seen seperately for both business 

Setion 44AB applicable is assesse wise not business wise. Because the section starts with the words "every person" not every business.
 

turnover should be clubbed on pan card basis , per pan card if business exceeds 60L then audit is required for all business. as the return and tax audit specifies all the business and turnover of pan card holder assesee, there is no space left for separate audit and non audit summery in return, 

Hi Sandip

I think, in this case the assessee is liable for tax audit u/s 44AB for both businesses. Because if the assessee carries on more than one business, the result of all business should be clubbed together in determinig  the applicability of 44AB.

Eg:

Business1 Business2 Tax Audit
12 lakhs 40 lakhs no
12 lakhs 62 lakhs both
48 lakh 22 lakh both

for more understanding please read the attachd guidance note.

Have a liuminus Thans to all of you......

liable for tax audit as in case proprietorship  business, it has to be clubbed togather... Club the T/o of the 2 business....

AGREE WITH ABISHEK

he is under audit as his total buss income exceeds 60 lakhs

audit u/s 44AB is required for both the business as per IT act, 1961

the assessee will get only one 3rd for all the business consolidated, 

In this case the assessee is liable for tax audit u/s 44AB for both businesses(i.e. he has two proprietor business) Because if the assessee carries on more than one business, the result of all business should be clubbed together in determinig  the applicability of 44AB.

Eg:

Business1 Business2 Tax Audit
12 lakhs 40 lakhs no
12 lakhs 62 lakhs both
48 lakh 22 lakh both

But if an assessee has one proprietor business and he is also a partner in a firm then clubbing of businesses will not be done as both are separate entity...

In income tax audit is assesseewise not businesswise so assessee is liable to audit both the business subject to exceptions like a business under presumptive taxation


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Topics
Loading
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details
Company
14 May 2026
Senior Accounts Executive

Karan Gupta & Co.

New Delhi

Graduate (Any)

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details