Tax audit

This query is : Resolved

Om Prakash Choubey (Querist)
Follow

02 October 2013 Dear All,
If a assessee was liable to Tax Audit for the AY 2012-2013 but in the AY 2013-2014 his gross income is less than one crore. Whether he is liable to get his account audited for AY 2013-2014. If not then how he can claim the Depreciation and other expenses in books of account for the AY 2013-2014.

CA Pallav Singhania

CA Pallav Singhania (Expert)
Follow

02 October 2013 Tax Audit is applicable on the relevant year in which the turnover or the gross receipts exceeds the prescribed limit. i.e 1 crore...

There is no such provision that if tax Audit is applicable it will be applicable for every year...

CA Pallav Singhania

CA Pallav Singhania (Expert)
Follow

02 October 2013 However, If Section 44AD applied in the year when the turnover doesn't exceed the prescribed limit then,

All deductions under sections 30 to 38, including depreciation and unabsorbed depreciation, shall be assumed to have already been given full effect. No further deduction shall be allowed under these sections.

However, in the case of assessee being firm, the normal deduction in respect of salary and interest paid to the partners shall be allowed as deduction out of such presumptive income subject to conditions and limits specified in clause (b) of section 40.