An assessee is carrying two business. The Turnover of first business does not exciding 60lacs, but The Turnover of second business exciding 60 lacs. Is the assessee liable for Audit U/s 44AB for the both businesses?
CA SANDIP HISARIYA (JOB) (32 Points)
19 August 2011
An assessee is carrying two business. The Turnover of first business does not exciding 60lacs, but The Turnover of second business exciding 60 lacs. Is the assessee liable for Audit U/s 44AB for the both businesses?
abhishek
(student)
(151 Points)
Replied 19 August 2011
no as per IT act he is liable for the audit only for the business which turnover is more then 60 lakhs..
Amit Gupta
(Loosening Myself)
(1508 Points)
Replied 19 August 2011
Under income tax it doesnt matter if he is havin one business or more..Section 44AB is attracted if the gross receipts are more than 60 lacs from one or more businesses
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 19 August 2011
audit will be done on individual business bases
means 60 loakh limit will be seen seperately for both business
Pragnesh
(AM - Taxation)
(1259 Points)
Replied 19 August 2011
Setion 44AB applicable is assesse wise not business wise. Because the section starts with the words "every person" not every business.
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 19 August 2011
turnover should be clubbed on pan card basis , per pan card if business exceeds 60L then audit is required for all business. as the return and tax audit specifies all the business and turnover of pan card holder assesee, there is no space left for separate audit and non audit summery in return,
Sanat kumar
(Chartered Accountant)
(265 Points)
Replied 19 August 2011
Hi Sandip
I think, in this case the assessee is liable for tax audit u/s 44AB for both businesses. Because if the assessee carries on more than one business, the result of all business should be clubbed together in determinig the applicability of 44AB.
Eg:
| Business1 | Business2 | Tax Audit |
| 12 lakhs | 40 lakhs | no |
| 12 lakhs | 62 lakhs | both |
| 48 lakh | 22 lakh | both |
for more understanding please read the attachd guidance note.
CA SANDIP HISARIYA
(JOB)
(32 Points)
Replied 19 August 2011
Have a liuminus Thans to all of you......
CA Shiv
(Business Controller)
(2987 Points)
Replied 19 August 2011
liable for tax audit as in case proprietorship business, it has to be clubbed togather... Club the T/o of the 2 business....
jayesh
(Pursuing Final CA)
(98 Points)
Replied 19 August 2011
he is under audit as his total buss income exceeds 60 lakhs
tarun gupta
(CA FINAL)
(24 Points)
Replied 19 August 2011
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 19 August 2011
the assessee will get only one 3rd for all the business consolidated,
CA YOGESH GARG GMG PLYWOODS
(BUSINESS OF PLYWOOD and PARTNER IN GUPTA & MALHOTRA CHARTERED ACCOUNTANTS)
(248 Points)
Replied 20 August 2011
In this case the assessee is liable for tax audit u/s 44AB for both businesses(i.e. he has two proprietor business) Because if the assessee carries on more than one business, the result of all business should be clubbed together in determinig the applicability of 44AB.
Eg:
| Business1 | Business2 | Tax Audit |
| 12 lakhs | 40 lakhs | no |
| 12 lakhs | 62 lakhs | both |
| 48 lakh | 22 lakh | both |
But if an assessee has one proprietor business and he is also a partner in a firm then clubbing of businesses will not be done as both are separate entity...
silvi ubal gomes
(Awaiting Final Result)
(82 Points)
Replied 20 August 2011
In income tax audit is assesseewise not businesswise so assessee is liable to audit both the business subject to exceptions like a business under presumptive taxation
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