Is interest on FD included for computation of gross turnover
This query is : Resolved
23 July 2011
1)Professional income 14,80,000/- .Interest on Fixed Deposit30,000/-. Is tax audit u/s 44AB compulsory.
2) Business Income41 Lacs, & Prof Income10 lacs. Is sec4 AB attract ?
3) Prof Income1000/-. Interest on FD 14,99,000/-. Sec 44AB attracted ?
2) Business Income41 Lacs, & Prof Income10 lacs. Is sec4 AB attract ?
3) Prof Income1000/-. Interest on FD 14,99,000/-. Sec 44AB attracted ?
23 July 2011
1)Professional income 14,80,000/- .Interest on Fixed Deposit30,000/-. Is tax audit u/s 44AB compulsory.
Reply- Gross Receipts from profession only will be seen , Tax Audit is not compulsory in this case.
Reply- Gross Receipts from profession only will be seen , Tax Audit is not compulsory in this case.
23 July 2011
2) Business Income 51 Lacs, & Prof Income10 lacs. Is sec 44AB attract ?
Section 44AB (a) is not applicable in case of business turnover.
Section 44AB (b) is not applicable in case of gross receipts from profession.
Both (a) and (b) required to be satisfied separately being separate subsections and
connected with "or"
Section 44AB (a) is not applicable in case of business turnover.
Section 44AB (b) is not applicable in case of gross receipts from profession.
Both (a) and (b) required to be satisfied separately being separate subsections and
connected with "or"
23 July 2011
3) Prof Income 1000/-. Interest on FD 14,99,000/-. Sec 44AB attracted ?
Reply-
44AB not attracted.
Q
Prof Income 1000/-. Interest on FD 14,99,0000/-. Sec 44AB attracted ?
44AB not attracted.
Reply-
44AB not attracted.
Q
Prof Income 1000/-. Interest on FD 14,99,0000/-. Sec 44AB attracted ?
44AB not attracted.
23 July 2011
Sir 100% agreeed, please refer any case law so that I establish this view,
23 July 2011
I have not read any case law on these issues as the provisions in the Act have clearly been mentioned. There may be some,
but the facts may be different.
You may pl. refer Section 44AB. Things will become clearer.
but the facts may be different.
You may pl. refer Section 44AB. Things will become clearer.
23 July 2011
sir say a begger's total begging income exceed 15 lacs or 60 lacs , is 44AB applicable ?
23 July 2011
sir say a begger's total begging income exceed 15 lacs or 60 lacs , is 44AB applicable ?
Reply-
-------
(Humour)
1. Beggars are not covered in the definition of a person - Rahim Khankhana
" Rahiman ve nar mar chuke,
je kahun magan jahi | "
2. Estate Duty had been also abolished.
3. Persons identifiable with names can only be assessed.
4. There is no scheme like Group Return Filing Scheme also
5. They do not have any residential proof
or identity proof. Even if they have they will not give you. You know that, in the absence of a documentary proof you will not be able to make their PAN Card also.
6. To demand is there business/profession, legally ,they are not supposed to pay.
7. They have a right to make demand from those whoever issues a demand on them.
8. Even if they pay the same is not allowed as business expenditure even though the expenditure is exclusively related with the business.
9.They are unregistered charitable institutions.
Reply-
-------
(Humour)
1. Beggars are not covered in the definition of a person - Rahim Khankhana
" Rahiman ve nar mar chuke,
je kahun magan jahi | "
2. Estate Duty had been also abolished.
3. Persons identifiable with names can only be assessed.
4. There is no scheme like Group Return Filing Scheme also
5. They do not have any residential proof
or identity proof. Even if they have they will not give you. You know that, in the absence of a documentary proof you will not be able to make their PAN Card also.
6. To demand is there business/profession, legally ,they are not supposed to pay.
7. They have a right to make demand from those whoever issues a demand on them.
8. Even if they pay the same is not allowed as business expenditure even though the expenditure is exclusively related with the business.
9.They are unregistered charitable institutions.
24 July 2011
sir, most of my friends and principles have now aggred upon your view but still they prefer Tax Audit,their opinion like that " IT dept may create problems and they may impose sec 271B ie penaly for faliure to audit. so in order to avoid problems beter to audit and efile return?
Sir my question dept can do it ?
Sir my question dept can do it ?
25 July 2011
It is important for an auditor to have the knowledge of the business of the client.
.
If you know that the business receipts as shown by the client are not verifiable, as well as , the expenditures related thereto are also not verifiable, department does not have any evidence or cross confirmations, so that it can raise any notice upon them, audit evidences are not available, recovery of fees unless taken in advance is doubtful, all are covered in the aspect of "knowledge of the business".
.
Being a professional a doctor has to cure a patient, who ever it may be.
But he also exercises his judgement before making any prescriptions which would be affordable to him. His sense of being a human permits him to do charity in the name of serving the human being. However, he observes first the effect of medicines before undergoing a probable operation
On the same line if you can go, you can save your client from the possible hardships.
Why do not start such clients from opting Section 44AD ?
The extra amount if forming part of the turnover can easily be diverted to his other business associates. Knowledge of business thus pays you here in increasing the number of client base.
.
.
If you know that the business receipts as shown by the client are not verifiable, as well as , the expenditures related thereto are also not verifiable, department does not have any evidence or cross confirmations, so that it can raise any notice upon them, audit evidences are not available, recovery of fees unless taken in advance is doubtful, all are covered in the aspect of "knowledge of the business".
.
Being a professional a doctor has to cure a patient, who ever it may be.
But he also exercises his judgement before making any prescriptions which would be affordable to him. His sense of being a human permits him to do charity in the name of serving the human being. However, he observes first the effect of medicines before undergoing a probable operation
On the same line if you can go, you can save your client from the possible hardships.
Why do not start such clients from opting Section 44AD ?
The extra amount if forming part of the turnover can easily be diverted to his other business associates. Knowledge of business thus pays you here in increasing the number of client base.
.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
