Audit Applicability for the Individual

Please Need help on this urgently!!

Want to know the provision under which an individual is liable for Tax audit??

One of my client owns a Building and major source of income is Rental, and such rental income are distributed to the co-owners in the defined %age, the co-owner are senior citizen and have other no incomes, and since rental income doesnt fall into the perview of section 44AB no tax audit of building takes place.

Should co-owner be liable for Tax audit if there rental income exceed 10lacs??

Replies (3)

10 Lakh limit is for the professional receipts. Since rental income is not  the professional receipts, section 44AB will not be applicable upto 40 lakhs for AY 2010-2011.

No, in your case no one is liable for tax audit.

Tax audit is applicable only if turnover exceeds Rs 40 lacs in case of business or gross receipts exceeds Rs 10 lacs in case of profession.

What if there individual income exceed Rs 10 Lacs from such rental Plus they earn director remuneration which is less than 2 lac p.a

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