Audit of accounts
This query is : Resolved
12 April 2014
My mother has a income from rent of House Property of around Rs.30-40 thousand in a year after deducting expenses . Is she required to get her accounts audited .
12 April 2014
Is your mother receiving gross rents Rs.1 crore and above per annum then required to make tax audit. In your query you indicated about net rental value(means after deduction of expenses) so to solve your query required Gross rents receiving per annum; otherwise decide your self based on the above provision i said.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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13 April 2014
She is receiving Rs.25000p.m. as rent.
14 April 2014
Then her gross rental income per annuam is Rs.3,00,000 means which is below Rs.1 crore so not required to make tax audit and however the rental income is chargeable to tax under the head income from house property.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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14 April 2014
So if we submit her ITR without getting it audited by a CA will not create any problem in future.
14 April 2014
No audit is required and therefor, filling of Return without auditing books of account is sufficient and as per Provision of IT Act.
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14 April 2014
Yes, you will not face any problem
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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15 April 2014
If we show the rent income as her business income then what we have to do?
15 April 2014
If we show the rent income as her business income then what we have to do?
15 April 2014
If you want to show it as business income then the rental income shall be your mother's main sources of income and she mainly depending on the rental income to support her life and her dependents life.
In your case your gross rental income is Rs.300000 assuming, property taxes are paying by the tenants and no loan borrowings for that property then if you offered such income under the head House property then taxable income is Rs.2,10,000 for the purpose of income and if you offered such income under the head business income then taxable income shall be Rs.30-40 thousands as you said rental income after all expenditure(net income). But to prove it is business income required as i said above.
OM SAI SRI SAI JAI JAI SAI
In your case your gross rental income is Rs.300000 assuming, property taxes are paying by the tenants and no loan borrowings for that property then if you offered such income under the head House property then taxable income is Rs.2,10,000 for the purpose of income and if you offered such income under the head business income then taxable income shall be Rs.30-40 thousands as you said rental income after all expenditure(net income). But to prove it is business income required as i said above.
OM SAI SRI SAI JAI JAI SAI
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15 April 2014
Can we show half of the total rental income as my mother's business income and other half as my father's house property income as the property is 50% owned by both my parents.
Even if the income is business income no audit is required?
Even if the income is business income no audit is required?
15 April 2014
If the property is on both the names of your mother and father then you can show 50% from your mother income and another 50% is from your father income.
Yes, even it is business income no audit required, because of when you offering it under business income then section 44AD shall apply for your case according to section 44AD required minimum profit of 8% on gross turnover/receipts thus for your case require minimum profit of Rs.24,000/- as per section 44AD but you offering higher amount than Rs.24,000/- so tax audit u/s 44AB not applicable.
OM SAI SRI SAI JAI JAI SAI
Yes, even it is business income no audit required, because of when you offering it under business income then section 44AD shall apply for your case according to section 44AD required minimum profit of 8% on gross turnover/receipts thus for your case require minimum profit of Rs.24,000/- as per section 44AD but you offering higher amount than Rs.24,000/- so tax audit u/s 44AB not applicable.
OM SAI SRI SAI JAI JAI SAI
15 April 2014
Their is a Loan against property.The rebate of the interest paid is claimed by my father in HP income .
I want to know where to claim rebate for the interest in case of my mother's income?
I want to know where to claim rebate for the interest in case of my mother's income?
15 April 2014
If the income from such property is divided between two or more persons then any expenditure incurred on such property like property taxes paid by the owners and interest on borrowed capital(loan) and principle repayment of loan etc... shall be divide among them in the same ratio of income divided.
So in your case rebate of interest shall also be claim in your mother hands.
OM SAI SRI SAI JAI JAI SAI
So in your case rebate of interest shall also be claim in your mother hands.
OM SAI SRI SAI JAI JAI SAI
15 April 2014
THANK YOU @DINTAKURTHI TIRUMALA
02 October 2021
Go by actual facts, without managing the tax saving clues....
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