05 August 2010
If a person having no professional/ technical qualification, his receipts from a company deducted U/s194-J, his gross receipt just crossed 10 lacs and issued TDS certificate. Whether his income has to be audited U/s 44 AB ? Actually he is doing consultancy service for the company. Whether we file his IT Return without Audited will it attract penalty? Actually the company given a big amount as exgratia but deducted tax @10% and issued complete TDS certificate...
05 August 2010
Consultancy service is also a kind of profession and his income has to be audited u/s 44AB. OTHERWISE PENALTY U/S 271B WILL BE APPLICABLE.
In addition, please check whether you have made compliance with TDS law which is applicable after achieving taxaudit level turnover. S. 194J provides that that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such sum by way of fees for professional services or technical services is credited or paid, shall be liable to deduct income-tax under this section.
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