Tax audit under section 44AB

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TARUN JAIN (Querist)
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16 July 2009 Dear All

If one person is getting Brokerage of Rs. 32 Lacs in his proprietorship name and Salary of Rs 18 Lacs and Interest of Rs 8 lacs in his individual name out of his personal FDRS then should he get his accounts audited under section 44AB ? will he be coming under Tax Audit ?

Thanks and regards

Tarun Jain

Abhishek Mohta

Abhishek Mohta (Expert)
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16 July 2009 As per the provisions of Sec 44AB, every person carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds Rs. 40 lakhs in any previous year get his accounts of such previous year audited by an accountant before the specified date.

In the given case the receipts from the proprietorship firm is less than Rs. 40 lakhs and the other income have been earned by him in his personal capacity. So he is not liable to get his books audited U/s 44AB.

However, if he has earned those Rs. 32 lakhs as brokerage in his profession capacity then he has to get his books audited as for income from professional services Rs. 40 lakhs has been replaced by Rs. 10 lakhs.

TARUN JAIN

TARUN JAIN (Querist)
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16 July 2009 Thank you Abhishek

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