Dear Friends
I have a friends who has proprietorship as software professional. His yearly income for F.Y 2012-2013 is Rs. 27 Lac. Whether he is required to audit his account as a professional as he crossed limit of professional of Rs. 25 lac or he comes limit of 1 crore? In simple sense software professional is a professional u/s 44AB or he is only bussinessman ? Kindly guide me wheather he is required to audit his accounts or not ?
If they are engaged in the business of software purchase and sale, it is a business.
Please note that if they are receiving professional fees after deduction of TDS u/s 194J, there is no escape. they are required to show as professional income and accordingly 44AB will be applicable being lower limit of 25 Lakhs.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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