I am doing a Sub Contract work and i was received in FY- 2010-11 Rs. 58,50,000/- and I am also an Insurance agent and I was get a Insurance commission Rs. 2,00,000 in the FY-2010-11 till the date my it return not filed i want file my it return before 31st March my query is 1) I am Audit my Accounts U/s 44AB or Not because total Gross Receipts is more than 60lks 2) if non tax audit i will shown my sub contract gross receipts u/s 44ad and ofered 8% N.P. and what about the Insurance commission and which head is shown insurance commission Income from other source or Professional Income
01 March 2012
In your case insurance commission has to be considered as business receipt only. Hence, your total turnover exceeds Rs.60 lacs and you are subjected to 44AB audit.
08 March 2012
I disagree with mr Krishna Mohan. Sec 44AD is applicable for a particular business. So the business of subcontracting and Insurance agent is different. Hence Sec 44 AD will be applicable for both business seperately. Your Tax Liability will be calculated as follows..(8% x 5850000) + (8% x 200000)
09 March 2012
I would like to differ with Mr.Shah; Section 44AD is per assessee and not per business; Hence, any assessee carrying two or more businesses, his entire turnover has to be clubbed for the purpose of Section 44AD. Other experts, please respond to this.
10 March 2012
I would like to inform MR. Krishna, that in section 44AD it is mentioned "ELIGIBLE BUSINESS" which is (i) any business except the business of plying, hiring or leasing goods carriages referred to in section 44AE; and
(ii) whose total turnover or gross receipts in the previous year does not exceed an amount of sixty lakh rupees.
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