Professional income

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Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2017 Respected sir
Our client is Practising Doctor and income is near to 30 lakhs

If he don't go for u/s 44ADA and file itr 3

And show less than 50 % profit

Is there audit required ??

RAJA P M

RAJA P M (Expert)
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29 July 2017 Yes he show less than 50%. But, audit is applicable...

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Mridul

Mridul (Expert)
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29 July 2017 As per Section 44AB of IT, Act Audit is required if Receipt from profession is more than 25 lakhs. So, in this case Audit is required because Receipt is more than 25 lakhs.

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Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2017 For a.y.17-18 limit is 25 lakhs or increased to 50 lakhs ??

Mridul

Mridul (Expert)
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29 July 2017 It is 25 Lakhs, there is no change. The confusion is there, because a new section is introduced 44ADA which has applicable for limit upto 50 Lakhs.

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2017 OK
Thanks a lot
Mridul sir and RAJA P M SIR

Studentsca

Studentsca (Expert)
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29 July 2017 Limit under section 44AB for tax audit has been increased from Rs. 25 Lakhs to 50 Lakhs vide Clause 25 of Finance Act 2016.

Hence no Audit is applicable.

Mridul

Mridul (Expert)
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29 July 2017 @Studentsca Thanks, For updating me. I just checked it you're right. @Anonymous Sorry, for the wrong information, was not updated about this.

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Studentsca

Studentsca (Expert)
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29 July 2017 You are welcome !!!

RAJA P M

RAJA P M (Expert)
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29 July 2017 @ Mr. Mridul., I appreciate you.... Good Luck......

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2017 Respected sir,

Starting financial year FY 2016-17, the turnover limit for audit for professionals continues to be 25lakhs. There is no amendment to Section 44AB. There is no change in audit requirement for professionals NOT covered under presumptive scheme
As per Press Release of the Income Tax Department dated 20th June 2016

I found this From Clear tax site.

Kindly give your Suggestions sir.

Neeraj Sharma

Neeraj Sharma (Expert)
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30 July 2017 Professionals whose Total Gross Receipts do not exceed more than Rs. 50 Lakhs in a financial year can claim benefit of this Section from Financial Year 2016-17. The Income of professional person making use of this Section would be assumed to be 50% of the Total Gross Receipts for the year hence Turnover should be under 50lakh. if you show 50% of the gross receipt then you dont neet to audit. but in case where your gross profit ratio is below 50 % then you need to audit.

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