Tax Audit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2011 An assessee has a proprietory firm in which sale of goods is of 80 Lacs. In addition to this he has received brokerage of Rs. 7 Lacs in his personal Bank A/C which is also business income. Is the amount of Rs. 7 lac Brokerage also subject to Tax Audit?
If yes , what audit has to be done since there is no separate Proprietory firm for brokerage income.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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14 January 2011 Yes.

Because there is one return for his proprietory firm and other income.

For brokerage income, you have to prepare separate statements and thenafter merge it into one.

After merging the both, another balance sheet and profit and loss account would be prepared.

Although requirement of return is to submit the details of proprietory concern but there is a fault in the formation of form.

Hence, for practical purpose you may do what I have suggested hereinabove.