Applicability of Tax Audit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2010 My assessee is a commission agent having a Gross commission receipt from business of Rs.3500,000/- and also has a speculation income of Rs.15,00,000/- in F.Y.2009-2010. whether he is liable for Tax Audit u/s44AB?

srinath

srinath (Expert)
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21 July 2010 for wat commission is earned... if it is of professional income then RS. 10 lakhs is the limit and liable for tax audit

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2010 its for business

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mohinder kansal

mohinder kansal (Expert)
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21 July 2010 turnover from all businesses whether speculation or otherwise is exceeded Rs. 40 lacs. tax audit is required

Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2010 thanks, can you give any case law reference for such clubbing of speculation receipts with business receipts.

mohinder kansal

mohinder kansal (Expert)
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22 July 2010 you may refer para 5.11 of Guidance Notes on Tax Audit issued by ICAI. turnover includes all businesses whether speculative or non speculative. moreover in your case 15 lacs is speculative income, turnover may be more that this. it may be crore(s) of Rs. method of calculation of turnover from speculative business/F & O/derivatives etc. is also explained in above para. It is lengthy. if don't find that, give your mail address, i will mail you after scanning.