Applicability of Section 44AB of Income-Tax Act,1961

This query is : Resolved

G. Rajesh (Querist)
Follow

02 December 2019 Good afternoon sir/ madam,

An assessee being a Doctor carrying on Medical Profession as well as Trading activity. In the Financial year 2018-19, the assessee is having turnover of Rs. 58,00,000/- from trading activity and Gross Receipts Rs. 48,00,000/- from Medical Profession. The Aggregate of turnover/ Gross receipts is Rs. 1,06,00,000/-.

In the Asst. year 2017-18, the assessee has opted for Presumptive Income and later on in the Asst. year 2018-19, the assessee has opted out of Presumptive Income by declaring profits above 8% in case of business having turnover Rs.38,00,000/- and profits above 50% in case of Medical Profession having Gross Receipts of Rs. 49,00,000/-. Thus the aggregate Turnover for the Asst year 2018-19 is Rs. 87,00,000/- .

Does the assessee is required to get his books audited for the Assessment year 2019-20 where the aggregate turnover exceeds Rs. 1 Crore.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

02 December 2019 1. Profession has to be audited if gross receipts > 50 lakhs and Trading has to be
audited irrespective of turnover,
Inference - 44 AB(b) and 44AD(5).

2.Profession has to be audited if gross receipts < 50 lakhs as well as profit < 50% of gross receipts and Trading has to be audited irrespective of turnover,
Inference - 44 AB(d) and 44AD(5).

G. Rajesh

G. Rajesh (Querist)
Follow

02 December 2019 Thank u Sir,

Thus the assessee has to get his books of accounts audited for the Asst year 2019-20 ?

G. Rajesh

G. Rajesh (Querist)
Follow

02 December 2019 Sir,

If books are required to be audited then in such situation what should be date of audit report since due date of 31st Oct-2019 is lapsed.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok