CA Abdul Halim Siddiqui (Partner) (481 Points)
18 March 2009M/s.ABC is partnership firm( hospital ) under tax audit . There are 2 partners receiving salary & remuneration each amounting to Rs.8,00,000/- from above professional firm (which is under tax audit) and also they have their individual clinic, receiving gross fee receipt such amount which makes their total income exceeding Rs.10,00,000/-. IS TAX AUDIT COMPULSORY FOR THEM?
SUPPOSE GROSS RECEIPT FROM INDIVIDUAL CLINIC IS RS.3,00,000/-
dheeraj kr singh
(article)
(287 Points)
Replied 18 March 2009
tax audit is complasoury for those whose gross turnover for a financial year cross rs 40,00,000/-
CA Abdul Halim Siddiqui
(Partner)
(481 Points)
Replied 18 March 2009
C.A. M.Com. Suhas A. Nagpure
(CA)
(1175 Points)
Replied 18 March 2009
Yep......
In 1st case-Where total gross receipts exceed Rs.10 Lakhs Tax Audit is compulsory
In Second Case where Gross receipts are less than Rs. 10 Lakhs Tax Audit is not required.
In case of salary received from Firm - It will be charged under Income from Salary & not under Income from Business & Profession. (On Such Salary TDS Should be Deducted).
ashish
(student)
(28 Points)
Replied 18 March 2009
yes tax audit is compulsory for them as their individual receipts from their profession is exceeding Rs. 1000000 for the relevant assesment year
CA Abdul Halim Siddiqui
(Partner)
(481 Points)
Replied 18 March 2009
SUHAS your view is incorrect since u/s 28(6), salary recd from firm is taxable as business & profession income.hey i have came to know that it is not liable to tax audit as per some csse law . want ref for that case law . if you have it than provide me with it
Ankur Agrawal
(CS, CA Final)
(239 Points)
Replied 18 March 2009
...hmmm....i think tax audit is not cumpulsory......!! ur view is correct that salary received from firm is taxable as BNP income but ...in my opinion for the purpose of tax audit of the clinic ...one have to see whether or not the assesse have received a gross amount of rs 10 lakh form that clinic. in ur case there is only a receipt of 3 lakh ...so no tax audit is required u/s 44ab....!
=# if u have two business (suppose A & B ) ...we have to see ...whether or not they are individualy fulfills the condiitons of Sec 44ab.
Ankur Agrawal
(CS, CA Final)
(239 Points)
Replied 19 March 2009
| Originally posted by :Rajesh Kumar | ||
| " | Ankur is right. I concur | " |
now i have some problem in this matter...
Rajesh sir, 1 of my frd told me that as per Sec 44ab, we have to see limit in consolidated manner...means turnover of all businesses of an individaual is to consider. still i didn't agree from my friend views....!!
C.A. Sanjay Bhatia
(CA)
(496 Points)
Replied 19 March 2009
Tax audit is not compulsary in this case as both the income are from different sources.
sudhakaran R
(Audit Executive)
(22 Points)
Replied 19 March 2009
Salary & Interest receicved from the Partnership is taxable under the head of income form Business / Profession hence Tax audit is compulsary according to my opinion
VENKAT SIVALINGAM ARUN
(CHARTERED ACCOUNTANT)
(41 Points)
Replied 19 March 2009
The Act is very clear that the professiobnal firm's receipt is more than Rs. 10 lacs the firm is coming under tax aaudit.
for the individuals the remuneration and interest from the firm is treated as income from business or profession only and hence the income from firm and their individual income puttogether crosses Rs. 10 lacs the individual too comes under compulsory tax audit
vijay
(.)
(212 Points)
Replied 26 April 2009
Dear Halim,
if income from any profession exceeds Rs. 10,00,000 then it comes under the ambit of Tax Audit. and for a non-professionalist the limit is Rs. 40,00,000.
I hope you will find this information useful.
Regards
Vijay kumar
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
