a proprietor owning an Advertising Business has reached a turn over of RS 14.81 lakhs this financial year.It is expected that next year it will cross 15 lakhs.
Queries- Will he be liable to a) TAx Audit next year? b) Deduct TDS from next year onwards?
20 March 2011
Advertising comes under 'business' and not under 'profession'. Refer ICAI publication "Issues on Tax Audit",2000 edition,page 24. In view of that, the assessee has not crossed the threshold limit. Hence 44AB and chapter XVIII-B of the Income tax Act,1961 do not apply meaning thereby tax audit and tax deduction are not required.
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