Practicing CA
8639 Points
Posted on 09 December 2009
In my opinion, the person is not liable to get his books of accounts audited u/s 44AB as either of the limites is not crossed. The section specifies that if the Gross turnover from business exceeds Rs. 40 lakhs or the Gross Receipts from profession exceed 10 lakhs, the person shall be liable to get his books of accounts audited under the section, i.e. 44AB.
In this case as the GT from business is Rs. 35 lakh and GR in Profession is Rs. 8 lakh, none of the threshold limits is said to be exceeded. So tax audit is not applicable under section 44AB.
However, if the net profit from business is below the rate of presumptive taxation, the person will be liable to get books of accounts audited under the presumptive audit section i.e from 44AD to 44AF whichever is applicable.