Applicability of Tax Audit
This query is : Resolved
24 July 2010
There is a client, whose annual professional receipts are less than Rs 10 Lakhs.However, aggregate of professional receipts and sales crosses Rs 10,00,000. Is tax audit applicable ?
Aditya Maheshwari
(Expert)
24 July 2010
For 44AB it is either professional receipts more than 10 lakhs or sales more than 40 lakhs.
The word is or and not and no tax audit not applicable.
The word is or and not and no tax audit not applicable.
CA.ViVeK M ACA
(Expert)
24 July 2010
Fact of the case
Annual profeessional receipts is less than 10 lakh but aggregate of professional receitps exceeds 10 lakh
Reason
As per the IT Act the tax audit required to be done where total Turn over exeeds 40 laks / in case of assesee carrying on profession then 10lakh
Conclusion
Tax audit will be applicable
Annual profeessional receipts is less than 10 lakh but aggregate of professional receitps exceeds 10 lakh
Reason
As per the IT Act the tax audit required to be done where total Turn over exeeds 40 laks / in case of assesee carrying on profession then 10lakh
Conclusion
Tax audit will be applicable
Aditya Maheshwari
(Expert)
24 July 2010
Professional receipts is not above Rs. 10 lakhs.
The total of business receipts and professional fees is more than Rs. 10 lakhs.
Please check Vivekji if still tax audit is required.
The total of business receipts and professional fees is more than Rs. 10 lakhs.
Please check Vivekji if still tax audit is required.
24 July 2010
As per Section 44 AB
The following persons are required to get their accounts compulsorily audited by a chartered accountant
1. A person carrying on business, if the total sales, turnover or gross receipt in business for the accounting year or years relevant to the assessment year exceed or exceeds Rs. 40 lakh.
2. A person carrying on profession, if his gross receipts in profession for an accounting year or years relevant to any of the assessment year exceeds Rs. 10 lakh.
NO TAX AUDIT IS REQUIRED IN ABOVE CASE.
The following persons are required to get their accounts compulsorily audited by a chartered accountant
1. A person carrying on business, if the total sales, turnover or gross receipt in business for the accounting year or years relevant to the assessment year exceed or exceeds Rs. 40 lakh.
2. A person carrying on profession, if his gross receipts in profession for an accounting year or years relevant to any of the assessment year exceeds Rs. 10 lakh.
NO TAX AUDIT IS REQUIRED IN ABOVE CASE.
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