Income tax query urgent

A assessee is covered in section 44AE(Having only 5 vehicles). Is he liable for Tax audit if his gross receipts exceeds 60 lacs?

Replies (12)
Sec 44AB is applicable only In case of business covered U/s 44AE if profit declared is lower than deemed profit/income. In any other case its not applicable though gross receipt exceeds 60 lacs. This is totally on my opinion.
Originally posted by : Mary Asha
Sec 44AB is applicable only In case of business covered U/s 44AE if profit declared is lower than deemed profit/income. In any other case its not applicable though gross receipt exceeds 60 lacs. This is totally on my opinion.

Asha,

But 44 AB is applicable to all assessee whether he is covered u/s 44AE or not.

 

Tax audit should be conducted if turnover exceeds Rs.60 lacs.

Yes. He is liable to Tax Audit.

Originally posted by : Aman Mehta

Tax audit should be conducted if turnover exceeds 60 lacs.

 

Yes ,in this case ,assessee is liable for tax audit

ya ,liable to tax audit....

 

Dear Ashish ji,

I am afraid you have been misguided. Maybe the answers of the members of CCI posted might be a random post.

Let me show you the professional aspect.

Section 44AE is an explarory and exceptional case where an assesse might posses gross receipts more than 60 Lakhs yet escape from clutches of Tax Audit u/s 44AB, PROVIDED he doesnt maintain Books u/s 44AA and doesnt opt to show an income lower than 5000 per vehicle per month.(However an assesse might on his dicretion opt to disclose actual earnings  on such vehicle)

Futher section 44AE overrides section 28 to 43C and perpetually 44AB as long as assesse possesses 10 vehicles only.

LONG AND SHORT OF IT IS "dont maintain books under 44AA" and simply go for "PRESUMPTIVE" basis valuation. Thats what any clever Tax planner/Consultant would suggest.

ASAL ME YE UN BAHUT ALPA TRUTIO ME SE HAI, JO ABHI TAK FINANCE MINISTRY KE VAR SE BACHA HUYA HAI.

So there ovious Tax planning possible. I have practically suggested and acted on this issue during my Article period dear.

Hope doubt is clarified........

CHEERS................

@  Arijit Bhattacharjee-Thanks for the correction !!!

Agree with Arijit reply  .

yes tax audit is applcable...

Thanks to all of you.

 

Tax Audit is appilicable if turnover exceeds 60Lakhs for Companies/Firms etc.,and 15Lakhs for Individuals

In This Case Assessee is liable to Tax Audit..

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