For tax audit u/s 44ab we required to considered all heads

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This query is : Resolved

ramanamma (Querist)

23 September 2016 Dear Professionals,

One Assessee had below mentioned heads of incomes for the Financial Year 2015-16
Income from Business is Rs. 93,87,749
income from House property is Rs. 6,60,714
Income from Other Sources Rs. 9,459
Income From Salary Rs. 60,000
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Total Amount 1,01,17,922

Is the Individual covered under Tax Audit U/s 44AB
My doubt is for tax audit limit of Rs. 1 Crore we considered only income form business or all heads of incomes.
If we considered income from business in that case assesse is not liable for tax audit ???

Please advice me on this issue.

CA SAGAR M. AHUJA

CA SAGAR M. AHUJA (Expert)

23 September 2016 As per Guidance Note on Tax Audit issued by ICAI.......
The following items would not form part of "gross receipts in business" for purposes of section 44AB.
(i) Sale proceeds of fixed assets including advance forfeited, if any;
(ii) Sale proceeds of assets held as investments;
(iii) Rental income unless the same is assessable as business income;
(iv) Dividends on shares except in the case of an assessee dealing in shares;
(v) Income by way of interest unless assessable as business income;
(vi) Reimbursement of customs duty and other charges collected by a clearing agent;
(vii) In the case of a recruiting agent, the advertisement charges received by him by way of reimbursement of expenses incurred by him;
(viii) In the case of a travelling agent, the amount received from the clients for payment to the airlines, railways etc. where such amounts are received by way of reimbursement of expenses incurred on behalf of the client. If, however, the travel agent is conducting a package tour and charges a consolidated sum for transportation, boarding and lodging and other facilities, then the amount received from the
members of group tour should form part of gross receipts;
Thanks.

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