Applicability of Section 44AB of the Income-Tax 1961

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G. Rajesh

student

111 Points Joined May 2013

Good afternoon sir/ madam,

An assessee being a Doctor carrying on Medical Profession as well as Trading activity. In the Financial year 2018-19, the assessee is having turnover of Rs. 58,00,000/- from trading activity and Gross Receipts Rs. 48,00,000/- from Medical Profession. The Aggregate of turnover/ Gross receipts is Rs. 1,06,00,000/-.

In the Asst. year 2017-18, the assessee has opted for Presumptive Income and later on in the Asst. year 2018-19, the assessee has opted out of Presumptive Income by declaring profits above 8% in case of business having turnover Rs.38,00,000/- and profits above 50% in case of Medical Profession having Gross Receipts of Rs. 49,00,000/-. Thus the aggregate Turnover for the Asst year 2018-19 is Rs. 87,00,000/- .

Does the assessee is required to get his books audited for the Assessment year 2019-20 where the aggregate turnover exceeds Rs. 1 Crore.

Replies (10)

S ELAVARASI

ACCOUNTANT

2975 Points Joined August 2017

No... Tax Audit not applicable.

CA Poonam Chopda

Chartered Accountant

55 Points Joined November 2019

Tax audit is not required as threshold limit had not been exceeded

RAJA P M

"Do the Right Thing...!!!"

128121 Points Joined January 2015

Tax Audit not applicable as per Query...

Pawan Vemula

284 Points Joined February 2018

AS PER SECTION 44AB OF INCOME TAX ACT 1961 TAX AUDIT IS NOT APPLICABLE IN YOUR CASE BECAUSE YOUR GROSS TURNOVER IS NOT EXCEED 1 CR AND YOUR GROSS RECEIPTS NOT EXEED 50 LAKHS , YOU CAN OP THE PRESUMTIVE INCOME U/S 44AD OF THE YOUR GROSS TURN OVER & GROSS RECEIPTS U/S 44ADA SIR.......

G. Rajesh

student

111 Points Joined May 2013

Thanks for the reply madam,

The assessee is maintaining books of accounts. While filling form ITR-3, the assessee has shown Rs. 58,00,000/- under Sale of Goods and Rs. 48,00,000/- as Medical Profession under the head Other Income.

Does CPC, Bangalore will not issue Notice U/s 139(9) while processing return of income ?

RAJA P M

"Do the Right Thing...!!!"

128121 Points Joined January 2015

Yes...

But, What is Your doubt...?

G. Rajesh

student

111 Points Joined May 2013

Sir,

My doubt is CPC, Bangalore are issuing notice U/s 139(9) for taxpayer having turnover above 1 crore but less than 2 Crore to get their book of accounts audited in case of assessee maintaining books of accounts irrespective of nature of activity.

In my case, i am maintaining book of accounts and having turnover from two different activities i.e business and profession. As per the above suggestions, Audit is not applicable in my case.

What If CPC, Bangalore issue notice U/s 139(9) of the Income-tax Act, 1961 on the basis of Aggregate turnover ?

Kapadia Pravin

17264 Points Joined December 2018

If you run a business as well as a profession, then tax audit is not based on total turnover from both.

If your business turnover is more than Rs. 1 crore then an audit is required for the business accounts,

and if the gross receipts from your profession is more than Rs. 50 lakh then an audit of the profession accounts is needed.

But if your business turnover is Rs. 90 lakh and your profession receipts are Rs. 40 lakh, then no audit is required for either accounts.

So under the question, no tax audit under 44AB is required for AY

RAJA P M

"Do the Right Thing...!!!"

128121 Points Joined January 2015

@ Mr G Rajesh.,

As per Your query Tax Audit not applicable. Also with the Both Turn over You filed correctly then CPC will be process Your ITR...

In case You are wrongly filed Your ITR in any manner then CPC issue notice...

So, Consider Your ITR...