Tax audit

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sampad mohanty (Querist)
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17 September 2012 Sir/Madam
A person who has a trading unit whose total sale is more than 1 crore. He has a truck so can he audited the trading accounts only and take the income of Rs. 60000 from truck business u/s 44AF

chetan soni

chetan soni (Expert)
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17 September 2012 Section 44AB states that the gross receipt more 1cr needs to maintained the books & needs to get the accounts audited.

If i understood the question properly then, the person he running the business of renting the truck & the annual gross receipt is less than 1cr. Sec 44AF, Rs.5K per month of part thereof can be considered as income (assuming the expenses sec 28-38 is already granted) & who owns not more than ten goods carriages any time during the year.

If you meet the condition :
1. Gross receipt less than 1cr
2. & owns not more than 10 trucks any time during the year.

Then you can show the income of 5k per month i.e. 60K for year.