Tax Audit for Working Partner

This query is : Resolved

Vijay Kumar (Querist)
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28 September 2010 Sir/Mam,

If the working Partner in Professional Firm (For Eg. A Doctor in a Hospital) receives salary and interest on capital and such amount in total exceeds Rs. 10,00,000/- in a year, whether such working partner is subject to Tax Audit U/s 44AB?

Reply Soon ! Its Urgent...!

CA Navin Jain

CA Navin Jain (Expert)
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28 September 2010 working partner not required to get tax audit since he has received salary which taxable under head salary so provision of tax audit is not applicable

kantijain

kantijain (Expert)
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28 September 2010 Dear vijay,

I partially agree with navin view that the working partner is not subject to tax audit. however the interest, remuneration , etc received by working partner will be taxable as business income as it covered by clause 28(v)

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VNS Sarma, Advocate

VNS Sarma, Advocate (Expert)
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29 September 2010 Interest ans Remunaration received from Partnership firm is business income and not professional income and hence no Tax Audit required, since turnover limit of 40lakhs not exceeded.

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