Tax Audit

This query is : Resolved

CA Navin Jain (Querist)
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26 November 2010 NET PROFIT OF ABC P LTD ARE AS

INCOME:-
BUILDING RENT;- 35 LACS
COMMISSION :- RS. 25 LACS

EXPENSES RELATED TO COMMISSION RS, 10lACS

NET PROFIT IS RS. 50LACS.

BUILDING RENT INCOME IS TAXABLE UNDER THE HEAD HOUSE PROPERTY.

WHETHER ABC P LTD IS LIABLE FOR TAX AUDIT U/S 44AB?

CA Sanat Pyne

CA Sanat Pyne (Expert)
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26 November 2010 NO, THE COMPANY IS NOT LIABLE FOR TAX AUDIT.

taxindiaconnect

taxindiaconnect (Expert)
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26 November 2010 As per section 44AB the turnover of the assessee should be more then 60 Lac. The Guidenance note on 44AB issued by ICAI also.

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CA.Madhusudan B.P.

CA.Madhusudan B.P. (Expert)
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26 November 2010 The limit u/s 44AB has been increased from Rs 40 Lakhs to Rs.60 lakhs effectively from 01.04.2010 onwards that is F.Y.2010-11 (A.Y.2011-12).
Moreover the income from business (Turnover/sales/gross receipts) shall be counted for the purposse of Sec 44AB applicability. hence no tax audit is applicable in hte given situatation