Tax audit applicability

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This query is : Resolved

NK1976

NK1976 (Querist)

10 September 2018 Dear Sir,

Our Pvt Ltd Company Income for 31.3.2018 as following :

Dividend from Mutual Fund 1,10,04,059
Dividend from Shares 2,12,807
Capital Gains Income 2,61,258
Interest Income 37,469
Total Income : 1,15,15,593

My query is applicability of Tax Audit u/s 44AB.
The Investments made by the company are shown in Balance Sheet as Current or
Non-Current Investments and corresponding income from the investments is shown
as ‘Revenue from Operations’.

Investments shown in Balance Sheet as Current or Non-Current Investments
and corresponding income from the investments should be shown as ‘Other Income’
than Tax Audit is not applicable to Company.

Please advise in above matter

Thanks & Regards
NK

RAJA P M

RAJA P M (Expert)

10 September 2018 As per My View.,
Tax Audit is applicable for the above said Incomes...

Tax Audit Limit for Company
All types of companies including private limited company and one person company are required to obtain a tax audit every year, irrespective of annual turnover or capital. Also, maintenance of book of accounts is mandatory for company, irrespective of annual turnover.

NK1976

NK1976 (Querist)

10 September 2018 But Income is not Taxable, income from Investment is Exempt.
In balance sheet investment shown as current & Non Investment not stock in Trade.
So Tax Audit is not applicable. In P & L we shown as other income not revenue from Operation.

RAJA P M

RAJA P M (Expert)

10 September 2018 All types of companies including private limited company and one person company are required to obtain a tax audit every year, irrespective of annual turnover or capital

NK1976

NK1976 (Querist)

11 September 2018 All types of companies are required to obtain audit as per Companies Act,
I am saying that about tax audit as per income tax under section-44AB.
If Turnover & total receipts exceeds above 1 crore.

RAJA P M

RAJA P M (Expert)

11 September 2018 (If Turnover & total receipts exceeds above 1 crore.)
Check out the word ***TOTAL RECEIPTS...

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