Tax audit-business income with capital gain

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Harish Chandra (Querist)

22 September 2011 A Co. dealing in trading of Goods, In FY 2010-2011 It had Rs. 5000000 turnover and It also Invest Fund in Mutual Fund and Share. and during this FY 2010-2011 It recd. 2500000 from Redemption of a Mutual Fund (LTCG Rs.1000000) and Rs. 1500000 from Redemption of Share (LTCG 105000 and STCG Rs. 350000)

I want to know that is Company is Liable to Tax Audit US 44AB or not For the FY 2010-2011

CA Ankit Verma

CA Ankit Verma (Expert)

22 September 2011 Since the Turnover of Co. is less than Rs. 60 Lacs irrespective of other incomes the co. is not liable for Tax Audit u/s 44AB for FY 2010-11

Harish Chandra

Harish Chandra (Querist)

22 September 2011 Thanks sir for replying, but if investment in securities is in object clause of MOA of company

CA Ankit Verma

CA Ankit Verma (Expert)

22 September 2011 Oh... If it is included in object Clause then amount of investment in securieties should be added to Rs. 5000000 (i.e. trading of Goods turnover) & then the limit of Rs. 60 Lacs have to be taken into consideration for determining whether Co. is liable for 44AB or not.

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