Dear Team,
Mr.X is an individual with the following financial information for A.Y.2013-14:
Income from HP: 1 Lacs
Income from Business: 40 Lacs
Long Term Capital Gain: 70 Lacs
Other Sources: 5 Lacs
Net Profit as per books: 75 Lacs
Total Income is 116 Lacs but tax audit is not applicable since turnover is less than 1 crore as LTCG is not included in the calculation of turnover.
Please suggest can we do tax audit for being on the safer side and if we do it then turnover for tax audit purpose shall be 40 Lacs whereas Net Profit is 75 Lacs. The net profit will give an absurd ratio. Please suggest what to do.
CAclubindia
