QUERIY ON 44AB

He is not doing any business and he is not having any turnover from business exceeding Rs. 40 lakhs. Hence, he is not liable for tax audit.

U/S 139(1), any firm having a gross turnover of 40 lakhs or above is liable for tax audit U/S 44AB, however the only limiting clause with this is , the working partners of such firms have to submit their returns on 30th September.

The partner does not have a gross turnover greater than 40 lakhs in an individual capacity, hence he is not liable to tax audit. If here were carrying out a specified profession, only then would the limit of 10,00,000 apply, in any other case, a limit of 40 lakhs applies. So only the firm is liable for tax audit.

My question is say if it is a  Chartered accountant firm . Mr A is a partner who is receiving salary or Commission as income is not chargeable under head salary he taxable under B 0r P. if his salary or commission exceed 10.00,000 whether he is liable to tax audit or not .. As the firm is already liable to tax audit.......

Nope, he won't be, the section specifies 'turnover' , irrespective of the salary or commission recvd. he won't be liable for tax audit, unless he's working in a sole capacity and his gross receipts exceed 10 lakhs.

So the main idea here is the stress upon sale/turnover, only the firm will be liable for tax audit.

If the receipts are as partner of CA firm, CA firm is subject to audit as well as partner having gross receipt of of Rs.10 lakhs that represents taxable amounts. Share of income from the partnership firm of CA is not included. If any amount of salary is disallowed to the partneship firm the same is not taxed in hand of the partner and that will not be counted. Only the amount RECEIVED from the firm that is subject to tax as income from Business & Profession to partner has to be considered before applying 44AB. Even if the taxable amount received from firm is less than 10 lakhs and the partner as an individual professional receives more professional receipts so that it crosses the 10 lakhs limit, then too Section 44AB applies. Likewise, if Partnership firm is doing Business then the amount received by a partner that is taxed as Business Income is counted as his business receipt / turnover and if alongwith proprietorship business these exceed 40 lakhs, then 44AB applies.

i also agreed with Sunil sir.....

agree with sunil....

Mr. Sunil Said very rightly. Section will also apply to partner also....

Mr sunil is right...

and the reply given is very deep nd clear...