Tax audit limit
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 December 2012
for ay 2011-12 my income is as follows
iam running a curing works my income from curing charges is 45 lakhs
interest income is 5 lakhs
handling charges is 10 lakhs
total is 55 lakhs
besides the above my sale of husk is 20 lakhs
if i count all the receipts its well over 60 lakhs and liable for tax auidt u/s 44 ab
my querry is that if i take only 55 lakhs as my receipts and estimates my sales u/s 44 ad as retails traders, shall I avoid tax audit please clarify
iam running a curing works my income from curing charges is 45 lakhs
interest income is 5 lakhs
handling charges is 10 lakhs
total is 55 lakhs
besides the above my sale of husk is 20 lakhs
if i count all the receipts its well over 60 lakhs and liable for tax auidt u/s 44 ab
my querry is that if i take only 55 lakhs as my receipts and estimates my sales u/s 44 ad as retails traders, shall I avoid tax audit please clarify
Selvakumar Selvaraj
(Expert)
14 December 2012
Dear Friend!
In your case it is covered u/s 44AB. Just refer the following case law
Applying the monetary limit - Receipts of assessee by way of sale or trading business and receipts for doing job work can be clubbed for finding out whether limit of Rs. 40 lakhs prescribed for attracting provisions of section 44AB is made out - Bajrang Oil Mills v. ITO [2007] 163 Taxman 154/295 ITR 314 (Raj.).
In your case it is covered u/s 44AB. Just refer the following case law
Applying the monetary limit - Receipts of assessee by way of sale or trading business and receipts for doing job work can be clubbed for finding out whether limit of Rs. 40 lakhs prescribed for attracting provisions of section 44AB is made out - Bajrang Oil Mills v. ITO [2007] 163 Taxman 154/295 ITR 314 (Raj.).
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