LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Tax Audit Limit

Manoj Gupta (B.Com, CA & CS) (416 Points)

24 February 2009

I have query regarding Tax audit

For example :- IF person A is an Artitect (Professional) and earns a gross receipt of Rs 6L He is also a partner where he receive a remuneration of Rs 7L. Is he Liable for Tax Audit ? Whether Rs 7L is considered In TAx Audit Limit ?

Reply
Follow
Share

11 Replies

BALASUBRAMANYA B N (CCI STUDENT....) (44668 Points)
Replied 24 February 2009

HELLO

FOR TAX AUDIT ITS SHOULD BE 40L OR MORE THEN THAT....

Manoj Gupta (B.Com, CA & CS) (416 Points)
Replied 24 February 2009

Originally posted by :Balasubramanya
"	HELLO FOR TAX AUDIT ITS SHOULD BE 40L OR MORE THEN THAT....	"

but he is Professional and for professionals tax audit limit is Rs 10L

(Guest)

you are wright bala

but this is in case of business

in case of profession if your gross receipt is Rs. 1000000 more then also tax audit require

and

Manoj I think no need for tax audit because professional receipt is Rs. 6L<10L

BALASUBRAMANYA B N (CCI STUDENT....) (44668 Points)
Replied 24 February 2009

can you explain of that

(Guest)

read section 44AB of income tax act

BALASUBRAMANYA B N (CCI STUDENT....) (44668 Points)
Replied 24 February 2009

thanks mukesh

Manoj Gupta (B.Com, CA & CS) (416 Points)
Replied 24 February 2009

Sec 44AB bifurcate income into 2 parts Income from Buz & income from Profession but what if an individual earns income from buz as well as prof, then what will be the Tax audit Limit ?

(Guest)

see manoj as per language of act, there is also gross receipt shall be taken into consideration and i think ur question is question of law so it is better to tax audit

Manoj Mhatre (Practising Chartered Accountant) (68 Points)
Replied 16 July 2009

Manoj, in your case Tax Audit u/s. 44AB not applicable since, your assessee carrying profession activity not crossing limit of 10 lacs and on other side he is receiving remuneration, which you cannot take into consideration for specifying tax audit limit coz for that turnover the said partnership firm is applicable for tax audit if he is crosses the limit of tax audit..hope i have clear your doubt.