to do or not to do the audit.
This query is : Resolved
11 February 2009
1. i have two propritorship farm.one of them is cloth and another is of chemical business.
now turnover of cloth business is 35 lacs and turnover of chemical business is 10 lacs.
whether i am liable for tax audit u/s 44AB?
2. if turnover of the profession is 8 lacs and turnover of business is 35 lacs.
then i am liable for tax audit u/s 44AB?
now turnover of cloth business is 35 lacs and turnover of chemical business is 10 lacs.
whether i am liable for tax audit u/s 44AB?
2. if turnover of the profession is 8 lacs and turnover of business is 35 lacs.
then i am liable for tax audit u/s 44AB?
11 February 2009
1. Yes, you are liable for tax audit u/s 44AB.
2. Yes, in this case you are also liable to tax audit as limit for professional receipts is rs. 10 lacs.
2. Yes, in this case you are also liable to tax audit as limit for professional receipts is rs. 10 lacs.
12 February 2009
if the gross receipt in profession is 8 lacs then
1. whether i m liable for audit?
1. whether i m liable for audit?
02 August 2025
Regarding your question on tax audit liability under section 44AB of the Income Tax Act:
1. **For your two proprietorship businesses:**
* Cloth business turnover: ₹35 lakhs
* Chemical business turnover: ₹10 lakhs
**Are you liable for tax audit?**
Yes, you are liable because the turnover of the cloth business alone exceeds the ₹1 crore (₹100 lakhs) threshold for audit. But wait, as per current rules (subject to yearly amendments), the threshold for tax audit for business turnover is generally ₹1 crore (it was ₹60 lakhs earlier). However, the exact threshold depends on the financial year. In 2009, it was ₹60 lakhs, so with ₹35 lakhs and ₹10 lakhs separately, none cross ₹60 lakhs individually, but total combined is ₹45 lakhs, which is less than ₹60 lakhs. But combined turnover is not considered for audit—it's per business. So audit is not required if each business turnover is below threshold.
**So, audit liability depends on if turnover is considered aggregate or separately. As per Income Tax rules, tax audit is required for each business separately.**
2. **If professional receipts are ₹8 lakhs and business turnover ₹35 lakhs:**
* Audit liability for profession is when receipts exceed ₹10 lakhs (or ₹15 lakhs as per recent amendments).
* Since ₹8 lakhs is less than ₹10 lakhs, you are **not liable for audit** on professional income.
* Business turnover ₹35 lakhs is below ₹60 lakhs (threshold at that time), so no audit liability there either.
3. **Summary:**
* Tax audit under section 44AB is required if:
* Business turnover exceeds ₹60 lakhs (for FY 2008-09, varies for later years), or
* Professional receipts exceed ₹10 lakhs.
* For multiple businesses, audit liability is determined separately for each.
---
**To answer your last question:**
If your professional receipts are ₹8 lakhs (less than ₹10 lakhs), you are **not liable for audit** under section 44AB for profession.
---
If you want, I can help you with detailed rules for your specific FY or help calculate whether you need audit based on current rules. Just let me know!
1. **For your two proprietorship businesses:**
* Cloth business turnover: ₹35 lakhs
* Chemical business turnover: ₹10 lakhs
**Are you liable for tax audit?**
Yes, you are liable because the turnover of the cloth business alone exceeds the ₹1 crore (₹100 lakhs) threshold for audit. But wait, as per current rules (subject to yearly amendments), the threshold for tax audit for business turnover is generally ₹1 crore (it was ₹60 lakhs earlier). However, the exact threshold depends on the financial year. In 2009, it was ₹60 lakhs, so with ₹35 lakhs and ₹10 lakhs separately, none cross ₹60 lakhs individually, but total combined is ₹45 lakhs, which is less than ₹60 lakhs. But combined turnover is not considered for audit—it's per business. So audit is not required if each business turnover is below threshold.
**So, audit liability depends on if turnover is considered aggregate or separately. As per Income Tax rules, tax audit is required for each business separately.**
2. **If professional receipts are ₹8 lakhs and business turnover ₹35 lakhs:**
* Audit liability for profession is when receipts exceed ₹10 lakhs (or ₹15 lakhs as per recent amendments).
* Since ₹8 lakhs is less than ₹10 lakhs, you are **not liable for audit** on professional income.
* Business turnover ₹35 lakhs is below ₹60 lakhs (threshold at that time), so no audit liability there either.
3. **Summary:**
* Tax audit under section 44AB is required if:
* Business turnover exceeds ₹60 lakhs (for FY 2008-09, varies for later years), or
* Professional receipts exceed ₹10 lakhs.
* For multiple businesses, audit liability is determined separately for each.
---
**To answer your last question:**
If your professional receipts are ₹8 lakhs (less than ₹10 lakhs), you are **not liable for audit** under section 44AB for profession.
---
If you want, I can help you with detailed rules for your specific FY or help calculate whether you need audit based on current rules. Just let me know!
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