Audit criterias

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2013 IF INTEREST AND REMUNERATION EXCEEDS 40,00,000 WHETHER AUDIT WILL BE CUMPULSORY? AND IN FULFILLING OF AUDIT CRITERIAS, INTEREST AND REMUNERATION RECEIVED FROM PARTNERSHIP WILL BE COMPUTED IN BUSINESS RECEIPTS OR NOT? WILL IT BE COMPUTED AS BUSINESS INCOME?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 December 2013 1. Section 28 of the Income Tax Act provides that the remuneration and interest received by a partner from his partnership firm is taxable in the hands of the partner as business income under the head Income from Profits and Gains of Business or Profession.

2. Audit will be applicable if such income exceeds Rs. 1 crore (for AY 13-14).

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Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2013 can i get any particular case law about it and is there any limit of interest and remuneration for applicability of audit. just assume that parson has no any other income he just gets interest and remuneration from partnership firm in which he is a partner and this income exceeds Rs. 1 crore but no any other income exist.if audit will be applicable because of income more than rs.1 crore but on this one income how can audit be applicable? of which matter verification will be done in the absence of other income and books of accounts?

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