Tax audit or not

Respected Sir

one of my Client was doing subcontract work and he is received total gross receipts Rs. 59,52,000/- and he was paid Rs. 5,00,000 for Security deposit because Sub-Contract work purpose, and he was received interest on Security deposit Rs. 60,000/- @ 12% P.A., so total Gross Receipts during the F.Y. 11-12 Rs. 60,12,000, at this situation Interest received on Security deposit is Capital a/c Credit or P&L A/c Credit. my Query is He is covered u/s 44AB or 44AD please tell

Thanks in advance

Replies (2)

For the purpose of Tax audit applicability u/s 44AB,only total sales or turnover is considered. Interest on security deposit is categorised under ''Income from Other Source''.Hence your client's sales turnover is Rs.59,52,000. therefore 44AD is applicable.

ACCORDING TO ME IN UR CASE U/S44AB NOT APPLICABLE,HENCE 44AD APPLICABLE

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details