Profession of a person is interior decoration , but he makes a sole proprietorship firm in the name of his wife and works as an employee and takes salary from his wife. the question arise his firm which is in the name of his wife liable to audit if receipts more than 50lakhs or 1 crore?
* His wife is not a professional.
4 Replies
CA ABHAY GUPTA
(Practice)
(3235 Points)
Replied 07 February 2020
Upto 2 crore if presumptive income is more or equal to 8% or 6% no audit if below 8% or 6% audit required
Pramod Limaye
(Chartered Accountant)
(172 Points)
Replied 07 February 2020
In my opinion, this will be considered as Profession only since it depends on nature of service and nature of service in this case demands specialised knowledge. It does not matter even if the person who renders the service is not a professional degreeholder.
Vikram Mishra
(3 Points)
Replied 07 February 2020
I am thinking same that it will be covered u/s 44ADA not 44AD.
Pramod Limaye
(Chartered Accountant)
(172 Points)
Replied 07 February 2020
It will be covered u/s. 44ADA
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