Income tax audit

ONE OF MY CLIENT IS PROP OF 3 FIRMS A, B  & C WITH TURNOVER OF 70 LACS, 10 LACS & 5 LACS WHAT IS LIABILITY U/S 44AB AUDIT OF BOOKS FOR A ONLY OR ALL FIRMS THANKS IN ADVANCE

Replies (13)
A only. That means whose turnover exceeds 60 lac, irrespective of remaining things.

Venkateswarlu
is rite .

 

yes, aggregrate amount of trunover will be considered for the purpose of TAX AUDIT.

Not Applicable . It is firm As per IT Act 44 AD only applicable and the limit is AY 2012-13 is RS.1 crore.

 

Originally posted by : RAJKUMAR SADHWANI

ONE OF MY CLIENT IS PROP OF 3 FIRMS A, B  & C WITH TURNOVER OF 70 LACS, 10 LACS & 5 LACS WHAT IS LIABILITY U/S 44AB AUDIT OF BOOKS FOR A ONLY OR ALL FIRMS THANKS IN ADVANCE

Aggregate turnover of all businesses carried on by an assessee would be taken into consideration in determining whether the limit of Rs.60 Lakhs (for AY 2012-13) has been exceeded or not.
.
In this case the aggregate turnover is Rs. 85 Lakhs. Hence, the results of all business activities should be clubbed together.
.
However, where the business is covered on presumptive basis, the turnover thereof shall be excluded.

Dear Sir,

 

If you are asking for AY 2012-13 then audit under section 44AB applicable for Assessee.

Section 44AB speaks about "Aggregate turnover".

that means you have to consider all the businesses of the Assessee.

But if you are asking for AY 2013-14 then audit under section 44AB is not applicable for Assessee as Agreegate turnover is not exceding Rs. 1 Cror.

 

Regards,

Pradeep.

 

Dear Rajkumarji

Income Tax identify each person by his/her PAN no. So Limit of Tax Audit applies to each PAN no. rather than independent business. So where there are 3 firms of which there is a sole owner i.e. Proprietor such limit is applicable to PAN of such owner. So such limit of Rs. 60 lakhs (for AY 12-13) or Rs. 1 Crore (From AY 13-14 onwards) is applicable to turnover all three firms.in your case it is 85 lakhs.

Tax audit is applicable.

Tax audit NOT APPLICABLE........Im attaching relevant para of Guidance note on tax audit........

Thanks for the question......

Dear Ashok ,

Friend your para itself says TAX AUDIT applicable.

Extracts of your para : 


5.15. It may, however, be noted that in cases where the assessee carries on more than one

business activity, the results of all business activities should be clubbed together. In other

words, the aggregate sales, turnover and/or gross receipts of all businesses carried on by an

assessee would be taken into consideration in determining whether the limit of Rs.40 lakhs as laid

down in this section has been exceeded or not.

Now instead 40 lakhs , limit is 60 lakhs for AY 12/13 & 1 crore for AY 13/14

Originally posted by : Varsh*t Shah

Dear Rajkumarji

Income Tax identify each person by his/her PAN no. So Limit of Tax Audit applies to each PAN no. rather than independent business. So where there are 3 firms of which there is a sole owner i.e. Proprietor such limit is applicable to PAN of such owner. So such limit of Rs. 60 lakhs (for AY 12-13) or Rs. 1 Crore (From AY 13-14 onwards) is applicable to turnover all three firms.in your case it is 85 lakhs.

Tax audit is applicable.

Agree.

Dear Varsh Shah/Rajkumar,

The question does not specify the year

If the query is pertaining to AY 12-13 Tax audit applicable, but if its relating to AY 13-14, tax audit not applicable......

 

Dear Ashok ,

I have mentioned the same limit in my earlier comment. Pls see it.

Your client has three businesses operating on his name. The key here is the name and not the number of businesses. One could be running 1 business or 10, eventually it is total turnover that counts. And since your client’s total turnover adds up to Rs. 85 lakhs, and the Sec 44AB becomes applicable for anything above Rs. 60 lakhs your client is liable for an audit. But if you are worrying about 2013-2014 then do not worry because the limit here is Rs. 1 crore.

Regards

Priya Awasthi

income tax efiling

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