Tax audit turnover

since individual's turnover has exceeded 60lacs, tax audit is mandatory, 44AE does not apply. There cannot two seperate assessments and returns for the same individual.

At the outset it is important to note the provision of section 44AE (5) which states as under : The provisions of sections 44AA and 44AB shall not apply in so far as they relate to the business referred to in sub-section (1) and in computing the monetary limits under those sections, the gross receipts or, as the case may be, the income from the said business shall be excluded. Therefore, the provision of section 44AB and 44AA is not applicable to Truck business. So tax audit may not be applicable as turnover from trading business is not in excess of 60 lacs. So best way out is claim 44AD on Rs. 26 lacs T/O of trading business. And claim 44AE for income of two trucks. If the income exceeds the bare minimum of 120000/- for the 2 trucks then disclose higher income as per accounts. The fact that 26AS does not reflect income will not create any problem.

its better to disclose income For  plying hiring vehicle at Rs.5,000 per month per vehicle (as per section 44AE) therefore income under this source will be 5000*12*2= 120000/-

for other business take benefit of 8% of gross amt. turnover (under section 44AD), or otherwise to get done Tax  Audit under section 44Ab if profit % is below 8% for this business 

 

Thanks a lot Mr Vineet Jaiswal and Mukesh Kumar.... I would further like to know that Should I disclose the entire turnover of Rs 4728432 u/s 44AE with profit of Rs. 120000 in return??? 

 

You don't need to disclose Gross turnover from vehicle& need not worry about what amt. shown in 26AS statement. You have to mention only no of vehicles you have operated during the year. Software will automatically calculate your income u/s 44AE of Rs. 120,000/-. Disclosing no of vehicle is sufficient for Revenue Department.   

Ok Thanks