Applicability of Tax Audit

This query is : Resolved

Lakshmi (Querist)
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24 July 2010 There is a client, whose annual professional receipts are less than Rs 10 Lakhs.However, aggregate of professional receipts and sales crosses Rs 10,00,000. Is tax audit applicable ?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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24 July 2010 For 44AB it is either professional receipts more than 10 lakhs or sales more than 40 lakhs.

The word is or and not and no tax audit not applicable.

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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24 July 2010 Fact of the case
Annual profeessional receipts is less than 10 lakh but aggregate of professional receitps exceeds 10 lakh

Reason

As per the IT Act the tax audit required to be done where total Turn over exeeds 40 laks / in case of assesee carrying on profession then 10lakh

Conclusion

Tax audit will be applicable

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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24 July 2010 Professional receipts is not above Rs. 10 lakhs.

The total of business receipts and professional fees is more than Rs. 10 lakhs.

Please check Vivekji if still tax audit is required.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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24 July 2010 As per Section 44 AB

The following persons are required to get their accounts compulsorily audited by a chartered accountant

1. A person carrying on business, if the total sales, turnover or gross receipt in business for the accounting year or years relevant to the assessment year exceed or exceeds Rs. 40 lakh.

2. A person carrying on profession, if his gross receipts in profession for an accounting year or years relevant to any of the assessment year exceeds Rs. 10 lakh.

NO TAX AUDIT IS REQUIRED IN ABOVE CASE.