Tax audit

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Shreyans Begwani (Querist)
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01 August 2013 I am a individual having business loss. ,However, my Total income exceed the treshhold limit (exemption limit). I want to know that whether Tax Audit is applicable on me as per sec 44AB.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 August 2013 Under clause (d) of Section 44AB, you are liable to get your accounts audited and file
the tax audit report.
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Section 44AD(5) prescribes audit in such a case. Incidentally, I have come across the first query in which in spite of business loss, tax audit is required to be carried on.
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Shreyans Begwani

Shreyans Begwani (Querist)
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01 August 2013 Sir,
Thanks for the reply.

But I had confusion regarding clause(d) of setion 44AB. The two condition present say:
1) Business Income is less than 8% of the Turnover.&
2) Income exceeds maximum amount not chargeable to tax.

So, my query is my business income is below the threshold limit & as per my understanding both condition are required to be satisfied for tax audit.

Sir Please guide me interpret the provision.

Thanks & Regards

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 August 2013 Condition No 2.

2) Income exceeds maximum amount not chargeable to tax
.
Read this as

2) Total Income exceeds maximum amount not chargeable to tax
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Total Income means Income under all the heads less Deductions of chapter VIA.
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Condition 1 is already complied with.
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Shreyans Begwani

Shreyans Begwani (Querist)
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01 August 2013 Ok Sir. Thanks you very much.

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