Tax Audit

 Yes tax audit is applicable. 

The salary received by a partner of a firm is taxable under the head PGBP.  

So the tax audit will be applicable if he is a professional and his salary from the firm exceeds 10 lakhs.

if received from a professional firm , 10 lakhs

if received from a business firm ,40 lakhs

yes for an indivisual the condition for tax audit is income xceeding 10lac Rs so he is liable for tax audit

yes.under the head pgbp sec-44ab wud b applicable.

 Parth

I want to know how did you arrive at this conclusion

Plz give some clarifications

Dear All,

Every person carrying on business shall, if his total sales, turn over or gross recipts, as the case may be, in business exceeds Rs. 40,00,000 in any previous year

&

In the case of a person carrying on profession, if his gross receipts in profession exceeds Rs. 10,00,000 in any previous year

is required to get his accounts audited u/s 44AB.

So, A partner geting remuneration from Partnership Firm whose remuneration exceeding 10,00,000 is not at all Liable for Tax Audit u/s 44AB.

I dont agree with Mr Parsun Garg . Read the provisions carefully

Dear Rajeev,

then u tell me the provision under which salaried person is liable to get his accounts audited under income tax act.

please read the provision carefully because it is very simple, here partner is in receipt of salary as mentioned in the query. 

The Partner's Salary is treated as income from business or profession and not taxed under the head salaries. Therefore if it is a business firm, the partners renumeration is taxable under the head income from business. It will be a part of his gross receipts from business. If this partner say draws salary from firm of 5 lakhs and in proprietorship business has over 35 lakhs, he will be audited. Likewise, a partner of a firm of specified profession drawing salary will be treated as professional receipt. If he also has professional receipt as a proprietor or individual, the salary will be included alongwith his individual propritorship receipts for purpose of 10 lakhs limit.

Regd. profit share from the firm, as it is not taxable in the hands of the partner, it is not clear whether that should be excluded from 44AB. We always enter this amount for record purpose under business (share from partnership firm). As an individual, it may get included as his gross receipts even though exempt from tax.

Dear Sunil,

I Agree with you, i missed the point of partnership firm. Thanks for a good advise.

hey anup if you dont know the sections pls dont comment , you are misguiding others.

Hello Parsun Garg

You said here tax audit is not applicable .

But partner's remuneration is cahargeable to income tax u/h PGBP, so we can't say dat here taxaudit is applicable

Plz remove my doubt

Thanks