01 July 2010
Sales and turnover in a business or same. But Gross receipts apply to business and profession. While sales denotes only amount received through sale of goods and commodities, gross receipts include other receipts which represent income such as rent receipts, interest receipts, commission receipts. For example, if a dealer makes purchase and sales and also consignment dealer and receives commission on his consignment sales, then gross receipts will include such commission also.
02 July 2010
Section 44AB (a) and (b) reads as follows:
44AB. 74Every person,—
(a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds 74a[forty lakh rupees] in any previous year 75[***]; or
(b) carrying on profession shall, if his gross receipts in profession exceed 75a[ten lakh rupees] in any 76[previous year; or
So the Tax Audit u/s 44AB is applicable only to income in the nature of profits and gains from business or profession. However in your case it is not clear, whether the assessee is deriving income from finance business which is assessable under the head profits and gains from business or profession and from investments which is assessable under the head income from other sources. If the interest income is derived which will fall into the ambit of profits and gains from business or profession then he shall be subjected to audit u/s 44AB.
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