This discussion clarifies tax audit requirements for businesses and professions. While a business with turnover under ₹15 Lac may qualify for Section 44AD, a profession with receipts under ₹50 Lac and profit below 50% of gross receipts might necessitate a tax audit under Section 44AB(d). The query explores if separate audits are needed when both business and profession fall under the same PAN, concluding that if the business opts for 44AD, a separate audit for it may not be required.
17 October 2023
Business turnover is 15 Lac - 44AD complied. Professional turnover is 7 Lac- Profit 2 Lac only- 44ADA not complied (less than 50% of gross receipts-44ADA not eligible). Total turnover under the PAN is 22 Lac. Can we do 44AB for profession and adopt 44AD for business?
17 October 2023
Yes I agreed with Mr CA R SEETHARAMAN Sir,
As per Your query Tax audit not applicable. But, the professional income must be u/s 44AA. otherwise profit will be declare 50% (or above)
17 October 2023
Sir, Kindly note that professional income is less than 50% of gross receipts. There fore Tax audit u.s. 44AB(d) applicable. In that case whether audit required for business also?