Dear Seniors,
if Person engaged in profession is
1) having loss from profession fees received during year 20,000 only but expenses incurred more like telephone ,travelling, depriciation
2) Maintaning books filling ITR 3 Since last 6 Years
3) Total income is 5,60,000/- ( loss from profession +rent income from HP)
Do he required to get books audited?
Yes, mandatory; unless he declares at least 10K profit from the professional activity.
Based on the information provided, the person is required to get their books audited. Here's why:
1. Loss from profession: The person has incurred a loss from their profession, which is a strong indicator that their books need to be audited.
2.Maintenance of books and filing ITR 3: The person has been maintaining books and filing ITR 3 for the last 6 years, which suggests that their income is above the threshold limit.
3. Total income: The person's total income is Rs. 5,60,000, which includes rent income from House Property (HP).
This exceeds the threshold limit for audit under Section 44AB.
As per Section 44AB, a person engaged in a profession is required to get their books audited if their gross receipts exceed Rs. 50 lakhs in a financial year.
In this case, the person's profession income is less than Rs. 50 lakhs, but their total income exceeds Rs. 1 crore (Rs. 5,60,000).
However, since the person has incurred a loss from their profession, they may be eligible for a relaxation in audit requirements under Section 44AB.
Additionally, the person may also be required to get their books audited under Section 44AD, which relates to presumptive taxation.
Sri Aurobindo Gnostic Centre of Education
New Delhi
CA
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