Section 44AB

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Hello Friends,

I have a client who is a Teacher by profession. She has opened a Dog Care Clinic where she has hired doctors.

She gives salary to doctors and as a propreitor of that clinic she gets the whole profit.

She get three type of receipts: 1) Professional Fees;   2) Vaccination Fees   3) Sale of Dog related items.

Now, my question is that :

1) What kind of income she is earning, is it professional receipts (Limtit 15 Lacs)  or business receipts (Limit 60 Lacs)  for tax audit purpose.

2) For Sec. 44AB, should I consider all the 3 type of receipts?

3) Is she required to get Service Tax Registaration if her gross receipts exceed Rs. 9 Lacs?

Thanks in advance for all your replies.

Regards,

CA. Sunil Garg.

 

 

Replies (1)

Hello Sir,

Under Income Tax Act 1961 the team Profession defines as “Profession” may be defined as a vacation, or a job requiring  some thought, skill and special knowledge like that of C.A., Lawyer, Doctor, Engineer, Architect etc. So profession refers to those activities where the livelihood is earned by the persons through their intellectual or manual skill."

So in this case the whole receipt (Including Professional Receipt) is a Business receipt only & so Tax Audit limit is Rs. 60 Lacs only. 

Thanks I hope this info helped u.

R Shriram.


CCI Pro

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