Tax audit

This query is : Open

Vishal Bhatt (Querist)
Follow

11 May 2013 One of my client engaged in retail business has total turnover of Rs.6000000. His total profit is 275000 which is less then 8% prescribed u/s 44AD. However his total income after deduction is 112000 which is less than the basic exemption limit. Is he Liable to Tax Audit u/s 44AB?
Pls do reply urgently.

Guest

Guest (Expert)

12 May 2013 Yes he is liable for tax audit u/s 44 AB, if he declares the income lower than presumptive income.

And the proposed income is more than the basic exemption limit

Vishal Bhatt

Vishal Bhatt (Querist)
Follow

12 May 2013 It means if his total income after deduction is lower basic exemption limit then he is not liable to audit even if he declares business income at the rate below the presumptive rate of income u/s 44AD.

Upgrade to CAclubindia Pro. Subscribe Now!

Guest

Guest (Expert)

12 May 2013 in my opinion proposed income means the income declare as business income i.e the income before deduction.