Tax audit applicability_FY 2324

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This discussion clarifies tax audit applicability for the financial year 23/24 concerning commission income. For an individual with Rs 4.5 lakhs in commission income and Rs 2 lakhs in net business income (total taxable income of Rs 2.90 lakhs under the new regime), a tax audit is not applicable. The experts confirm that maintaining books of accounts under Section 44AA is also not mandatory, provided the limits weren't crossed in the preceding three years.

Dipen

Dipen (Querist)

26 July 2024 Dear Experts,

For commission income (business income) of Rs 4,50,000/- , there is business expenditure of around 2.5 lakhs . Hence net business income is around 2L.

Also the total taxable income is 2.90 lakhs under new regime. Will there be any tax audit applicability here in terms of profit % or any other clause?

Please advice

Regards,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 July 2024 Tax audit not applicable in this case.

Dipen

Dipen (Querist)

26 July 2024 Thanks!

Also liable to maintain books of accounts u/s 44AA?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

02 August 2024 No. Not mandatory as per sec. 44AA IT act, assuming the limits not crossed in preceding three years.

Nikhil Kaushik

Nikhil Kaushik (Expert)

02 August 2024 liable to maintain books. And just to clarify, since you are not covered under 44AD, the only conditions for audit applicable for you are the ones prescribed under 44AB for cases where books of accounts are maintained.

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