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Clarification about 44ab

SANTOSH KUMAR CHOUDHURY (Student CA Final ) (27 Points)

26 December 2012

An Individual is having an income of 15,00,000 which includes professional and contract charges.Shall we take him under the purview of tax audit or not.

Please clarify.

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11 Replies

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 26 December 2012

what are the contract charges relating to?

SANTOSH KUMAR CHOUDHURY (Student CA Final ) (27 Points)
Replied 26 December 2012

contract charges are coming under 194C .

SANTOSH KUMAR CHOUDHURY (Student CA Final ) (27 Points)
Replied 26 December 2012

i just want to know whether the limit of 15,00,000 will be applicable to the assesee althought he is not having all 15,00,000 from the professional charges.

Clarification

1. for professional charges limit is 15 lakhs

2. for contract charges limit is 60 lakhs.

deepali agarwal (Company Secretary) (1289 Points)
Replied 26 December 2012

However, the tax Audit limit for professionals is Rs. 25 Lac but please specify what type of contract charges is the professioanl earning???

SANTOSH KUMAR CHOUDHURY (Student CA Final ) (27 Points)
Replied 26 December 2012

the assessee is engaged in land surveys.

CA Gaurav Ajit Potdar (Chartered Accountant) (846 Points)
Replied 26 December 2012

In the case of an assessee carrying on business and at the same time engaged in a profession as to what are the limits applicable to him under section 44AB for getting the accounts audited. In such a case if his professional receipts are, say, rupees15.1 lakhs but his total sales, turnover or gross receipts in business are, say, rupees 1 lakh, it will be necessary for him to get his accounts of the profession and also the accounts of the business audited because the gross receipts from the profession exceed the limit of rupees 15 lakhs. If however, the professional receipts are, say, rupees 14 lakhs and total sales turnover or gross receipts from business are, say, rupees 59 lakhs it will not be necessary for him to get his accounts audited under the above section, because his gross receipts from the profession as well as total sales, turnover or gross receipts from the business are below the prescribed limit.

For AY 12 - 13 Limits have been increaced from 60 lacs to 1cr & from 15lacs to 25 lacs for business & profession respectively.

2 Like

deepali agarwal (Company Secretary) (1289 Points)
Replied 26 December 2012

I think its included in Professioal services...

1 Like

NAIR MITHUN MOHAN (ARTICLE ASSISTANT) (77 Points)
Replied 26 December 2012

how can a contract charges be included in profession.contract is deducted in194c & professional charges are deducted in 194J.What type of contract should be specified because there is difference in contract & professional charge.the limit for A.Y 12-13 is 15lacs &for 13-14 is 25lacs but the income should be purely professional income.

deepali agarwal (Company Secretary) (1289 Points)
Replied 26 December 2012

But Land surveys is a professional service on aprt of a C.a ...

CA Mukesh Kedia (Chartered Accountants) (44 Points)
Replied 27 December 2012

Income by way of Land Survey shall form part of profeesional income as it is not raised through any business activity. Thus to calculate the professional receipts it will consider along with other professional income.

CA Sourabh Goenka (Chartered Accountant) (249 Points)
Replied 28 December 2012

Originally posted by : Gaurav A. Potdar
	In the case of an assessee carrying on business and at the same time engaged in a profession as to what are the limits applicable to him under section 44AB for getting the accounts audited. In such a case if his professional receipts are, say, rupees15.1 lakhs but his total sales, turnover or gross receipts in business are, say, rupees 1 lakh, it will be necessary for him to get his accounts of the profession and also the accounts of the business audited because the gross receipts from the profession exceed the limit of rupees 15 lakhs. If however, the professional receipts are, say, rupees 14 lakhs and total sales turnover or gross receipts from business are, say, rupees 59 lakhs it will not be necessary for him to get his accounts audited under the above section, because his gross receipts from the profession as well as total sales, turnover or gross receipts from the business are below the prescribed limit. For AY 12 - 13 Limits have been increaced from 60 lacs to 1cr & from 15lacs to 25 lacs for business & profession respectively.