I Know a person who was a professional in the entertainment industry and used to take professional fees which made him come under the tax audit for the last three assessment years.In AY 09-10 he had changed his job and is now working as a salaried empployee.But he also has his office running and he wants to maintain his proprietorship and there fore he wants tomake sure his itr goes as a ITR 4 and not ITR 2.
my question is:-
Is he still liable for tax audit?Why?
If not, can he claim the loss that arises from running his office.since the due date for filing return of salaried employees is 31st of July.
If possible Then please give suitable references.
Thank you all
CAclubindia
