30 July 2012
One of my client has income from online advertisement.Money is earned in US dollar and is transferred to his account at the exchange rate prevailing on the date of transfer.His gross turnover is less then 60 lakhs.I have heard somewhere that even if turnover is less then Rs.60 lakhs but is earned in foreign exchange tax audit is compulsory,irrespective of the quantum of receipt.I am a bit confused regarding the issue.Is tax audit required?
30 July 2012
As per income tax act, sec 44AB, there is no such provision, which says, tax audit is compulsory, if income includes,some foreign exchang income.
But as per FEMA, and other regulation act, there can be a provision of special audit if income is earned in foreign currency.
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