Tax audit

959 views 9 replies

In the case of proprietorship, the proprietor carries on business of software consultancy as well as sale of software. Individually both the business are below tax audit limit but as a whole the turnover exceeds Rs. 40 lacs. Please advise whether tax audit is required in such a case or not ?

Thanks

Replies (9)

HI Sandeep...

As per my opinion Individual is applicable for Tax Audit.

Section 44AB starts with.... In the case of any Person.... so we have to consider it as total turnover of that Person..

Thanks..

Liability for Tax audit.

Under Section 44AB: If the income of a person is below taxable limit, yet he/she will have to get his/her accounts audited, if his/her turnover in business exceeds Rs. 40 lakh.

So here Tax audit is require.

the turnover u/s 44AB is considered by adding all the business turnover,

thus if turnover exeeds Rs. 40 lacs from all or any of the business not covered under (44AD, 44AE etc.)

Tax Audit will be applicable

Liable for tax audit

Thanks for the replies.

Turnover while carrying on business is less than 40 lakhs (Sec 44AB(a) and while carrying on profession (consultancy) is less than 10 lakhs [sec 44AB (b)] but cumulatively it exceeds the auditable limits. What should be done ?

Yes  He is Liable for tax audit

Yes , he is liable for audit coz its not the business which qualifies for the audit but the assesse . n every assesse whos total turnover during the p.y. exceeds the said limit of 40lacs.is liable for audit .as per 44ab.

 

Yes as total gross turnover exceeds Rs.40 lacs and specially for individual case. Otherwise everyone will open different business to reduce turnover of each business to escape from audit.

yeh... liable 4 tax audit...


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register