Whether tax audit u/s 44ab or not?

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Guest

Guest (Querist)

03 January 2012 An assessee has unpaid interest on a loan for two years amounting Rs. 2,00,000 and sales of Rs. 58,00,000. If loan is written back then what would be the tax treatment for loan amount and interest amount. Will he liable to tax audit or not?

Nayan Das

Nayan Das (Expert)
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05 January 2012 No liable to tax audit

CA Kartik Sharma

CA Kartik Sharma (Expert)
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05 January 2012 No tax audit

Guest

Guest (Querist)

06 January 2012 [Audit of accounts of certain persons carrying on business or profession.

4 44AB. 5 Every person,—

(a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds 6 [sixty lakh rupees] in any previous year 7 [***]; or

(b) carrying on profession shall, if his gross receipts in profession exceed 8 [fifteen lakh rupees] in any 9 [previous year; or

(c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under 10 [section 44AE ] 11 [or section 44BB or section 44BBB], as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any 12 [previous year; or]] 13 [***]

14 [(d) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AD and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his business and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,]

get his accounts of such previous year 15 [***] audited by an accountant before the specified date and 16 [furnish by] that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed :

Respected sir, as per section 44AB as described above. What is the mean of TURNOVER or GROSS RECEIPTS and as per ICAI GUIDING NOTE ON TURNOVER within the means of 44AB, please suggest me where I have to take the effect of expense added back to avoid the 44AB criteria. And also you are requested to please guide me that where I have to show my total income in PROFIT & LOSS ACCOUNT IN ITR-4 because there is not any separate coloumn to describe the expenditure added back. So unfortunately I bound to show all the total income in first coloumn of PROFIT & LOSS ACCOUNT IN ITR-4.