One proprietor-- two different business -- tax audit
This query is : Resolved
02 July 2012
My Query is as follows:
Mr. A is proprietor of business X and business Y. The nature of both businesses are different. During FY 2010-11, both were subject to Tax audit. In FY 2011-12, sale & purchase of Business X is Rs. 38 lacs and Rs. 30 lacs, whereas sale and purchase of Business Y is Rs. 1.09 cr and Rs. 85 lacs resp.
I wish to know whether Tax audit is applicable to both the businesses on the ground that the proprietor of both the businesses is one & the same and files one ITR. Or Tax audit is applicable for Business Y only?
Mr. A is proprietor of business X and business Y. The nature of both businesses are different. During FY 2010-11, both were subject to Tax audit. In FY 2011-12, sale & purchase of Business X is Rs. 38 lacs and Rs. 30 lacs, whereas sale and purchase of Business Y is Rs. 1.09 cr and Rs. 85 lacs resp.
I wish to know whether Tax audit is applicable to both the businesses on the ground that the proprietor of both the businesses is one & the same and files one ITR. Or Tax audit is applicable for Business Y only?
03 July 2012
In the case of an individual, the gross turnover of ALL the business carried on by him shall be aggregated for checking the applicability of Section 44AB.
However, for this purpose, business covered u/s 44AD shall NOT be considered.
Since Business X is an eligible business u/s 44AD, tax audit is not required if the assessee complies with Section 44AD.
Otherwise tax audit is required for both the business.
However, for this purpose, business covered u/s 44AD shall NOT be considered.
Since Business X is an eligible business u/s 44AD, tax audit is not required if the assessee complies with Section 44AD.
Otherwise tax audit is required for both the business.
Message likes :
1 times
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
- Tax on Amount transferred in HUF Account
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- GST input credit on commercial property
- Nursery business
- TDS on Dashcam rent and allied services
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- Working on Gold wastage during Melting of old gold jewellery
- Import Order Cancelled.
- IMS (import of goods) ITC related
- Royalty payments to the Mining Department for procurement of murum - GST input
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
