Classification of income of P Ltd company as business or profession
This query is : Open
13 November 2026
A private limited company is providing business advisory services, CFO services, accounting, payroll and compliance services and transaction advisory services. Whether it has to show the profit from the above services as business or profession? This is crucial to decide whether Tax audit is applicable or not.
13 November 2026
A private limited company must classify all its advisory, CFO, accounting, and compliance service revenues as Business Income. Tax audit applicability will accordingly depend on whether its total gross receipts cross the statutory business turnover limit (₹1 crore or up to ₹10 crores based on cash-transaction limits) under Section 44AB.
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